Morgan Stanley Maintains Hold Rating on Abercrombie Fitch with $93 Price Target

Morgan Stanley analyst Alexandra Straton maintains a Hold rating on Abercrombie Fitch with a price target of $93.00. The company's shares closed at $95.36. Straton is a 4-star analyst with a 5.0% average return and 54.69% success rate. The analyst consensus is Moderate Buy with a price target consensus of $111.63, a 17.06% upside from current levels.

Abercrombie & Fitch (ANF) reported its 11th consecutive quarter of growth with record net sales of $1.2 billion for the second quarter of 2025, a 7% increase from the previous year. The company's shares closed at $95.36, despite a 1% decline in the stock price following the earnings release.

The clothing retailer's strong performance was driven by robust demand for its Hollister brand, which achieved a remarkable 19% growth in net sales. This growth was supported by an 8% rise in the Americas and a 12% jump in the Asia-Pacific (APAC) region, partially offsetting a 1% decline in Europe, the Middle East, and Africa (EMEA).

Both headline metrics exceeded analyst estimates, with net sales of $1.2 billion surpassing the average forecast of $1.19 billion, and adjusted net profit of $2.32 per share beating the estimated $2.27.

The company also raised its full-year net sales outlook, expecting annual net sales to grow by 5% to 7% over the previous year, up from its previous forecast of 3% to 6%. The per-share net income estimate was also increased to $10 to $10.50, up from the previous range of $9.50 to $10.50.

However, the company cautioned that higher U.S. government levies on countries that export to it, such as India, Vietnam, and Indonesia, will increase its costs by $90 million. This is significantly higher than the $50 million it estimated in May.

Analysts have mixed opinions on the stock. Morgan Stanley analyst Alexandra Straton maintains a Hold rating on Abercrombie & Fitch with a price target of $93.00. The analyst consensus is Moderate Buy with a price target consensus of $111.63, a 17.06% upside from current levels.

References:
[1] https://www.fool.com/investing/2025/08/27/why-abercrombie-fitch-stock-sank-today/
[2] https://www.quiverquant.com/news/Abercrombie+%26+Fitch+Co.+Reports+11th+Consecutive+Quarter+of+Growth+with+Record+Net+Sales+of+%241.2+Billion+in+Q2+2025