Needham Initiates Coverage of Abercrombie & Fitch Co. (ANF) With a Buy Rating

Abercrombie & Fitch Co. (NYSE:ANF) is one of the most undervalued retail stocks to invest in now. On March 26, Needham initiated coverage of Abercrombie & Fitch Co. (NYSE:ANF) with a Buy rating and a $108 price target. The firm told investors in a research note that the company’s fundamentals are stabilizing after a challenging fiscal 2025, with the Abercrombie brand’s comp sales “dramatically” improving in recent quarters. According to the firm, they could bounce back into positive territory soon, and thus it sees a “compelling risk/reward” at current valuation levels.

In another development, Jefferies cut the price target on Abercrombie & Fitch Co. (NYSE:ANF) to $130 from $135 on March 4, but maintained a Buy rating on the shares. It told investors that while the company delivered “a solid Q4” and FY27 guidance implying 3%-5% sales growth and double-digit margins despite tariffs, it is also important to note that the fiscal Q1 ERP disruption and continued tariff headwinds add uncertainty. Still, the firm believes that the underlying earnings power is “sustainable”, adding that it sees the current volatility creating an opportunity.

Abercrombie & Fitch Co. (NYSE:ANF) is a global omnichannel retailer that offers an assortment of apparel, personal care products, and accessories for women, men, and kids. Its brand portfolio includes Abercrombie brands, which include Abercrombie & Fitch and abercrombie kids, and Hollister brands, including Hollister and Gilly Hicks.

READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.

Disclosure: None. Follow Insider Monkey on Google News.