Abercrombie & Fitch stock leapt Friday after JPMorgan placed it on its Positive Catalyst Watch list. Abercrombie shares — up 60% year to date, despite a three-month pullback — were poised from a rebound from technical support.
JPMorgan in a Friday note said that Abercrombie was benefiting from accelerating brand momentum and customer acquisition growth for its namesake brand and Hollister, particularly for the back-to-school shopping season, Investing.com reported.
Abercrombie added there has been a more favorable promotional environment heading into the third quarter. Meanwhile, the apparel retailer group has seen strength across various categories, genders and geographies ahead of upcoming results.
JPMorgan noted that Abercrombie & Fitch was able to avoid the East and Gulf Coast port strike this week, as most of its goods ship into the West Coast. Abercrombie's supply teams helped manage the now-ended work stoppage due to "advanced visibility" of the situation, JPMorgan wrote.
The firm lifted its price target on ANF stock by $1 to $195 and maintained an overweight rating on the shares.
Abercrombie & Fitch Stock Rises
Abercrombie stock jumped 9.1% Friday. The move lifted shares to a test of resistance at the stock's 50-day moving average, positioning it to retake support and snap a downward trendline. This would create an early buying opportunity.
Abercrombie rallied to a record high of 196.99 on May 29. The stock in recent months has slid back to late-March levels, slipping to a test of support at the stock's 200-day moving average.
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