08:45 AM EDT, 05/29/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $29 to $149, based on 17.5x our FY 25 (Jan.) EPS estimate and higher than the company's 3-year average forward P/E multiple of 14.2x, reflecting continued momentum of its Abercrombie brand and better than peer growth. We raise our FY 25 EPS estimate by $1.50 to $8.50 and FY 26 EPS estimate by $2.00 to $7.00. ANF posts normalized Q1 EPS of $2.14 vs. $0.39, $0.42 above consensus estimates on revenues of $1.02B vs. $836M and $56M above estimates. By brand, Abercrombie revenues increased 31% Y/Y while Hollister increased 12%. The Americas led growth with a 23% increase Y/Y, followed by a 19% increase in EMEA and 10% growth in APAC. Q1 gross margin expanded 540 bps to 66.4%. The company guided for full-year revenue growth of 10% and operating margin of roughly 14% with growth slowing in the back half of the year. We remain neutral on shares due to valuation but continue to believe ANF is executing at a high level and maintains a strong balance sheet.