UBS Bullish on Abercrombie (ANF) Brand Strength After ICR Conference

Core Insights - Abercrombie & Fitch Co. (NYSE:ANF) is recognized for having one of the lowest forward PE ratios among stocks, with UBS maintaining a Buy rating and a price target of $160 following discussions with management at the ICR Conference [1] Financial Performance - Abercrombie & Fitch's fourth-quarter results exceeded expectations, with overall revenues increasing by 5%. Both Abercrombie and Hollister brands reported sales growth, with Hollister showing solid comparable growth and Abercrombie returning to healthy revenue growth for the first time in fiscal 2025 [3] Growth Projections - Analyst Mauricio Serna forecasts a 14% compound annual growth rate for Abercrombie & Fitch's EPS over the next four years, suggesting the retailer is positioned for long-term success. However, there are concerns regarding Hollister's ability to maintain strong sales growth into fiscal year 2026 due to challenging comparisons [2]