BMO Capital Cut Price Target on Abercrombie & Fitch (ANF) to $19 Following 2Q

August 31, 2016 9:21 AM EDT
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Price: $11.85 +0.85%

Rating Summary:
    12 Buy, 23 Hold, 9 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 30 | New: 23
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BMO Capital maintained a Market Perform rating on Abercrombie & Fitch (NYSE: ANF), and cut the price target to $19.00 (from $20.00), following the company's 2Q earnings report. ANF reported adjusted EPS of ($0.25) vs. the Street expectation of ($0.20). The miss came primarily from a lower-than-expected gross margin which was driven by higher AUCs, partially offset by higher AUR.

Analyst John Morris commented, "ANF reported worse-than-expected earnings driven by weak tourism spending that was mostly concentrated in the A&F brand. While we believe that there is a turnaround story for the company, we remain on the sidelines for now with our limited visibility on the pace of the core A&F division turnaround. We are reducing our 2016 EPS estimate to $0.61 from $0.71 and are taking our price target down to $19, which reflects nearly 21x our 2017 EPS estimate."

For an analyst ratings summary and ratings history on Abercrombie & Fitch click here. For more ratings news on Abercrombie & Fitch click here.

Shares of Abercrombie & Fitch closed at $18.29 yesterday.

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