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Investors Business Daily
Business
HARRISON MILLER

Abercrombie Stock Sheds Gains After Upgrade, Tumbling On S&P Move

Abercrombie & Fitch received an upgrade and price target hike early Monday as it's set to join the S&P MidCap 400. Abercrombie stock shed its gains after an early jump Monday.

JPMorgan on Monday upgraded Abercrombie & Fitch to overweight from neutral, The Fly reported. Analyst Matthew Boss noted improved fieldwork for the apparel retailer, which continues to point to broad-based demand for the Abercrombie brand. JPMorgan also is seeing brand inflection for Hollister, which is only in the "middle innings," Boss wrote, while brand momentum continues building internationally.

The firm also noted an opportunity with shares down about 20% since Q1 earnings.

JPMorgan hiked its price target on Abercrombie stock to 194 from 167.

Meanwhile, Abercrombie & Fitch is replacing Equitrans Midstream on the S&P MidCap 400 before the open Monday. The Dow Jones Indices announced the decision late July 16. Abercrombie stock sold off 8.5% last week following the announcement. Stocks promoted from the S&P SmallCap 600 index to the MidCap 400 often see a price decline on the announcement, as more money tracks the SmallCap 600 via mutual funds and ETFs.

Gates Industrial Corp. is replacing Abercrombie & Fitch in the SmallCap 600.

Abercrombie Stock

Abercrombie stock closed down a fraction Monday after popping about 5% in early trade on the upgrade. Shares rebounded to their 50-day moving average on the move but couldn't hold the level. Abercrombie fell below the technical line last week.

ANF stock rallied 79.6% this year.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

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