Analysts rate Abercrombie & Fitch Co.(ANF:NYE) with a Strong Buy, $42.00 Target

STA Research
by: STA Research
Abercrombie & Fitch Co. stock

Analysts rate Abercrombie & Fitch Co. stock with a consensus Strong Buy rating and a 12-month average target price of $42.00 per share.

JP Morgan & Company maintained Abercrombie & Fitch Co. with an Overweight rating and lowered the target price to $35 from $41 on the company’s stock.

Based on the Abercrombie & Fitch Co stock forecasts from 4 analysts, the average analyst target price for Abercrombie & Fitch Co is USD 42.00 over the next 12 months. Abercrombie & Fitch Co’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Abercrombie & Fitch Co is Slightly Bullish , which is based on 7 positive signals and 4 negative signals. At the last closing, Abercrombie & Fitch Co’s stock price was USD 32.24Abercrombie & Fitch Co’s stock price has changed by +0.02% over the past week, +3.80% over the past month and -19.10% over the last year.

What we like:

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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