Abercrombie & Fitch price target raised to $173 from $170 at UBS

UBS raised the firm’s price target on Abercrombie & Fitch to $173 from $170 and keeps a Neutral rating on the shares. Abercombie & Fitch’s Q3 report underscored strong execution amid a competitive retail environment and its initiatives should drive multiyear sales and EPS growth, but UBS believes EPS growth should meaningfully slow to a mid-single digit rate post-70% year over year in FY24, the analyst tells investors in a research note. Additionally, UBS sees limited upside to Street estimates given the Abercrombie brand’s deceleration and persistent cost headwinds, which should prevent meaningful P/E expansion and stock outperformance over the near-term.