Nomura Securities Maintains a 'Neutral' on Abercrombie & Fitch (ANF); There's Been Some LBO Chatter...

March 21, 2012 10:17 AM EDT
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Price: $11.90 +1.28%

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Nomura Securities maintains a 'Neutral' on Abercrombie & Fitch (NYSE: ANF) price target of $44.00.

Analyst, Paul Lejuez, said, "There has been some LBO discussion in the press recently surrounding ANF. We believe an ANF LBO is highly unlikely based on the following reasons: 1) Long leases in European flagships combined with negative comps, 2) CEO Mike Jeffries, 3) competitive teen landscape, 4) PE does not like the volatility of specialty apparel retailers, 5) to buy ANF at a 30pct premium would imply a $5bn+ deal, 6) store closings not producing benefits, 7) uncertainty in international, and 8) Hollister sales productivity fell 47% from 2006 to 2009. We believe the rationale we outlined above may be shared by many in the PE world."

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 $52.89 yesterday.

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