Mizuho Securities Cuts Price Target on Abercrombie & Fitch (ANF) to $15
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Mizuho Securities maintained a Neutral rating on Abercrombie & Fitch (NYSE: ANF), and cut the price target to $15.00 (from $20.00), following the company's 3Q earnings report. 3Q EPS of $0.02 missed the Street’s $0.20 estimate. Gross margin declined (130) bp due to FX, while lower AUC was offset by lower AUR.
Analyst Betty Chen commented, "We are lowering our estimates and PT to $15 (from $20) to incorporate the 3Q miss and expectations for further topline and margin pressure. As management continues to adjust the assortment and reposition A&F (which may be prolonged), there may be few levers to combat traffic headwinds and weakness in Int’l, flagship stores and FX. While modest sequential improvement at Hollister and DTC growth remains bright spots, ANF’s focus on real estate productivity may be unable to stem near-term earnings declines. Given the plethora of challenges, we view shares as fairly valued at 4x EBITDA."
Shares of Abercrombie & Fitch closed at $16.93 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Workday (WDAY) to $71 Following 3Q
- Jefferies Raises Price Target on US Physical Therapy (USPH) to $63 Following 12-Clinic Acquisition
- Jefferies Raises Price Target on Ulta Salon (ULTA) to $270; Reiterates Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!