BTIG Initiates Abercrombie & Fitch At Buy With $120 Price Target

Core Viewpoint - BTIG initiated coverage of Abercrombie & Fitch (NYSE: ANF) with a Buy rating and a $120 price target, indicating confidence in the retailer's growth prospects despite consumer headwinds [1] Group 1: Growth Prospects - Analysts believe that easing average unit retail (AUR) headwinds will assist A&F in returning to growth, with strong brand health and store traffic [2] - Multi-year growth opportunities are anticipated at Hollister as the brand adopts A&F's strategy [2] Group 2: International Operations and Valuation - Right-sized international operations are viewed as a growth driver not fully reflected in estimates [3] - The current valuation is trading well below historical averages and peers, suggesting that the market has priced in a sharp earnings decline, resulting in a favorable risk-reward profile [3]