Abercrombie & Fitch initiated with an Outperform at Raymond James

Raymond James initiated coverage of Abercrombie & Fitch with an Outperform rating and $180 price target Abercrombie & Fitch has significantly revamped its business over the past few years by improving product, widening its customer aperture, closing underperforming stores, and improving digital and store experience, the analyst tells investors in a research note. The firm views Abercrombie’s margin expansion opportunity as under-appreciated, as strong revenue leverages opex and international scales, adding that a strong balance sheet and robust free cash flow generation create a bigger focus on buybacks.