$JPM Analysts Get Decked Out in Abercrombie and Fitch with a Massive Upgrade (Shares Up 165%)

Abercrombie & Fitch (ANF) is out here doing what no one thought possible: keeping malls alive and well in 2024. You see, in a landscape where department stores are ghost towns and mall walkers outnumber actual shoppers, ANF is flexing harder than a Hollister hoodie on a high school freshman.

And when it comes to Wall Street, they are more than here for it.  Shares are up an eye-popping 165% in the past year, and JPMorgan just threw even more love Abercrombie’s way with an upgrade on Friday, sending shares to a peak of 9.1%. 

(Source: Nasdaq) 

So what’s really going on here, you ask? Well in short, Abercrombie & Fitch, the once-mighty purveyor of too-tight polos and overpowering cologne, is in the midst of a turnaround that could make Sam Darnolds NFL turnaround look less impressive than it already is. This has analysts at JPMorgan, led by retail whisperer Matthew Boss, just raised their price target on ANF to $195.

ICYMI, that’s a whole a$$ $1 bump within a game of inches, where every friggin 'dollar counts - while Boss also threw the stock onto JPM’s “Positive Catalyst Watch” list. Translation: JPMorgan doesn’t know (let’s be honest, they know) when ANF will pop, but they know it will pop eventually. 

(Source: Investopedia) 

The reason? Hollister, Abercrombie’s laid-back younger sibling, is in the “early innings of a turnaround” that appeases more to the “younger” crowd of this generation. Translation: more hoodies, fleeces, and tracksuits are flying off the shelves like it’s 2005 all over again. 

For instance, Hollister is coming in hot off the back of a stellar back-to-school season, which has Boss and his team feeling good about ANF’s Q3 earnings, slated to drop November 19. JPMorgan is projecting $2.40 EPS for Q3, with a revenue bump of 13%, and an extra 10 basis points tacked onto gross margins. 

What’s more is that the Wall Street  peanut gallery is mostly on board as well. Especially after Abercrombie’s CEO, Fran Horowitz, boasted of how “thrilled” she was with the company’s sales during August’s back-to-school rush (aka retails Super Bowl).  Out of eight analysts, five have Buy ratings on the stock and three are holding steady with Hold. Not a single brave soul has slapped a Sell on this bad boy, which is saying something in the cutthroat world of retail. The consensus price target sits at $186.43, implying a nice 28.76% upside from here.

(Source: Seeking Alpha) 

But what’s really interesting here is it’s not just analysts piling in either. Institutional investors like Axa S.A. and Marshall Wace LLP are boosting their stakes in Abercrombie like they’re hoarding rare Beanie Babies. Axa shelled out nearly $3 million for 16,509 shares, while Marshall Wace upped its holdings by a cool 16% in Q2. 

(Source: Defense World) 

Oh and Renaissance Technologies? They’ve more than doubled their position. So clearly, the big money sees what’s happening here. Maybe ANF is becoming more than just a nostalgia trip for millennials who miss the days of The OC and MySpace.

So in the end, what's the takeaway here? Well it’s obvious: Abercrombie & Fitch isn’t just surviving—it’s thriving. It’s got brand momentum, a Hollister turnaround in the works, and analysts are jumping on the bandwagon like it’s Black Friday at the mall (not 2024 mall, more like early 2000s mall).  Sure, there’s some risk, like potential margin hiccups, but if the current trajectory holds, ANF could soon be the comeback kid of the decade.

(Source: Investing.com) 

Meaning, next time you stroll through the mall to waste time or carry your wifes bags (my prized side hustle) and smell that familiar scent of Abercrombie cologne punching you in the face, just remember: it’s not just a store—it’s a friggin stock market juggernaut. And this time, it’s not just for teens with questionable fashion choices—it’s for anyone who wants a piece of retail’s unlikely resurrection story. How’s that for some Monday good news? 

In the meantime, whether you are a nostalgia fanatic or you simply like to cash checks and break necks, keep an eye on this stock going forward. And as always, stay safe and stay frosty, friends! Until next time…

P.S. Another winner! Friday morning's surprise alert ended the day with a nice 53% gain! Click here to upgrade to premium to make sure you don’t miss out on the next one. 

Stocks.News does not hold any positions in companies mentioned in the article.