Jesup & Lamont Initiates Coverage on Abercrombie & Fitch (ANF) with a Buy

October 6, 2009 9:13 AM EDT
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Price: $11.75 -2.73%

Rating Summary:
    12 Buy, 23 Hold, 9 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Jesup & Lamont initiates coverage on Abercrombie & Fitch (NYSE: ANF) with a Buy. Price target $36.

Jesup analyst says, "We believe that ANF’s year to date (29%) comp sales decline has more to do with low inventory levels, women’s fashion misses and reduced consumer demand for all apparel than with brand deterioration. Average inventory levels were down (31%) per store in 1H09 vs. 1H08. Expect to see recovery start in 4Q09 as international flagship revenues offset preopening expense drag. Expect ANF will be more aggressive on pricing into 4Q09...Double digit operating margins should be visible in 2010. We believe that ANF should be able to earn at least $2 per share in 2010 as it laps the high pre opening expenses associated with the opening of 4 flagship stores (A&F Milan and Tokyo, abercrombie kids in Milan, Hollister Soho NYC). We are projecting that these stores plus 20 European mall based Hollister stores should generate $250 million to $300 million in incremental revenues in 2010."

To see more analyst ratings on ANF Click Here.

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual sportswear apparel for men, women, and kids.

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