Piper Jaffray Reiterates Buy on Abercrombie & Fitch (ANF)
More News related to ANF
- Notable Analyst Rating Changes 9/5: UL, MON, NAV, HOS Upgraded; ANF, TJX, AMD, NBR Downgraded
- Pre-Open Movers 9/5: SankDisk (SNDK) and UST (UST) Both Up on Takeover Reports; Nokia (NOK) Sinks On Lower Market Share View
- Citi Downgrades Abercrombie & Fitch (ANF) to Sell
- Dow Sinks 300 On Weak Retail, Economic Data
- Retail Sales Reflect Depressed Consumer Confidence
More News related to Analyst Comments
- Goldman Sachs Downgrades Basic Energy Services (BAS) to Sell
- Goldman Sachs Downgrades Nabors Industries (NBR) to Neutral
- Goldman Sachs Downgrades ImClone (IMCL) to Neutral
- Citi Downgrades Abercrombie & Fitch (ANF) to Sell
- Morgan Stanley Downgrades Safeway (SWY) to Underweight, Saying Prices Too High
Piper Jaffray reiterates their Buy rating on Abercrombie & Fitch (NYSE: ANF) and maintains their $87 price target, after traveling with the CFO.
The firm said, "Among teen/youth retailers under coverage, we favor mid-cap ANF for long-term growth potential. While U.S. sales remain highly suspect to traffic volatility, we think the company's financial model is built with inherent flexibility to sustain double digit net income growth through various economic and fashion cycles. Layer atop the prospects forming in international markets and we think ANF offers a compelling core holding with further margin expansion potential from already industry high rates."
Piper also highlighted that ANF management believes that over the next 10 years, international revenues could increase from 12% to over 50% of consolidated revenues. Due to the tough macro environment ANF’s overall sales growth related to U.S. non-tourist stores is moderating. However, Piper believes “ANF fundamentals have fared remarkably well in the face of traffic volatility, increases in product costs, and a higher than average level of pre-opening expenses related to U.S. and international store development.” Also, the company is on track to grow its net income double digits this year and Piper still expects profit expansion near double digit rates this year.
Abercrombie & Fitch Co. operates as a retailer of casual apparel for men, women, and children in the United States, United Kingdom, and Canada.
Related Categories
Analyst CommentsStocks Mentioned
-2.02Related Entities
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!
