Citi downgraded Abercrombie & Fitch Co. from Buy to Neutral following a 36% share price rally. The firm increased its price target from $135 to $156. Analysts cited valuation concerns after the significant stock surge.
The company reported Q2 2026 revenue of $1.27 billion, a 4.8% increase year-over-year. GAAP profit reached $4.17 per share, significantly beating analyst estimates. Performance was driven by growth in the Abercrombie and Hollister brands and a one-time tariff refund.
Needham & Company LLC maintained a buy rating while raising its price target to $165.00. Overall market sentiment remains mixed, with some analysts cautioning that the stock is now significantly overvalued.