Abercrombie & Fitch Co . shares got a reiterated Outperform rating and a price target of $25.00 from Telsey Advisory Group analyst Dana Telsey.
According to Telsey, inventory balances are expected to be right-sized to demand trends ahead of the holidays. The pullback in orders from companies such as Walmart Inc creates a more favorable chase environment, the analyst indicated.
Telsey indicated that freight seems like a tailwind to margin in Q4, with the benefit continuing into FY23. Also, the analyst continues to expect long-term margin expansion opportunity through better store footprint and strengthening digital penetration.