Morgan Stanley analyst Alex Straton resumed coverage of Abercrombie & Fitch with an Equal Weight rating and $87 price target. The firm's view on Specialty Retail and Department Stores reflects an improving setup into 2H26, supported by a potential early-cycle backdrop, generally beatable consensus estimates, and multiple incremental consumer and earnings tailwinds, including tariff relief or mitigation, easing inflation, a resilient labor market, and potentially lower gas prices, while depressed sentiment and below-average valuations contribute to an attractive risk-reward profile for the group, the analyst tells investors in a research note.
