Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity research on small cap consumer names.

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

Abercrombie & Fitch Co Cl A / Equity Bottom-Up

<ul><li>We are reiterating our Buy rating, raising our pice target to $25 (from $14), and upping our projections for a.k.a. Brands after the company registered better-than-expected revenue and Adjusted EBITDA for 1Q24 and raised 2024 guidance, driven by strong domestic results, as all the company's concepts continue to gain market share in the United States via new stores, expanding digital marketplace relationships and the "test and repeat" method driving newness and fashion excitement.</li><li>Further, we believe the Australian operations, especially Culture Kings, are setting up for a 2H24 turn, with leaner inventories and better product mix.</li><li>As such, even after raising our projections, we believe upside remains in 2H24 and 2025 and are confident raising our price target to $25 and reiterating our Buy rating on AKA.</li></ul>

We are reiterating our Buy rating, raising our pice target to $25 (from $14), and upping our projections for a.k.a. Brands after the company registered better-than-expected revenue and Adjusted EBITDA for 1Q24 and raised 2024 guidance, driven by strong domestic results, as all the company's concepts continue to gain market share in the United States via new stores, expanding digital marketplace relationships and the "test and repeat" method driving newness and fashion excitement.Further, we believe the Australian operations, especially Culture Kings, are setting up for a 2H24 turn, with leaner inventories and better product mix.As such, even after raising our projections, we believe upside remains in 2H24 and 2025 and are confident raising our price target to $25 and reiterating our Buy rating on AKA.

Abercrombie & Fitch Co Cl A - AKA: 1Q Beginning of a Powerful Turn; Raising PT to $25, Reiterate Buy