(MENAFN - Yolo Wire) Wall Street analysts are pounding the table on small-cap stock %Abercrombie&Fitch (NYSE: $ANF) and urging investors to buy-the-dip in the popular clothing retailer.

has staged an impressive comeback in recent years. A popular clothing brand in the 1990s, the company and its stock fell on hard times during the 2010s.

But under new CEO Fran Horowitz, the brand and stock have been revived. Over the last 12 months, Abercrombie & Fitch’s stock has risen 91%, leading the U.S. retail sector.

Since the pandemic ended at the end of 2022, the company’s stock has soared 550% higher.

The dramatic increase has been driven by strong sales of the clothing retailer that targets Millennials and Gen Z and runs strong social media campaigns that frequently go viral.

However, for all its success, Abercrombie & Fitch has a market capitalization of less than $8 billion U.S., making it a small-cap stock.

In recent months, ANF stock has pulled back, declining 25% from its 52-week high of $196.99 U.S. per share.

The decline is partly due to consolidation following a big run in the share price over the past two years.

However, the stock also took a hit after Abercrombie & Fitch’s former CEO Michael Jeffries, who left the company years ago, was arrested and charged with sex crimes.

Analysts across Wall Street don’t see the arrest of the former CEO impacting the long-term health of the company or stock and are urging investors to buy-the-dip.

Matthew Boss, a top retail analyst at %JPMorganChase (NYSE: $JPM), has added the stock to the firm’s “Analyst Focus List,” while maintaining a Buy rating and $194 U.S. price target on the shares.

In recent days, Abercrombie & Fitch reported its financial results for this year’s third quarter and they were reliably strong.

The Ohio-based company reported earnings per share (EPS) of $2.50 U.S., which was well ahead of the $2.39 U.S. consensus forecast on Wall Street.

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COMTEX_460293199/2604/2024-11-29T00:04:51