Abercrombie & Fitch (ANF) PT, Estimates Raised at Janney Capital Post Q3

Janney Capital analyst Adrienne Yih-Tennant bumped her price target on Abercrombie & Fitch (NYSE: ANF) to $26.00 (from $25.00) while reiterating at Neutral rating. The analyst noted comps improved with promos while the product shift is still in transition.

Yih-Tennant commented, "ANF reports 3Q14 EPS of $0.42 vs the St at $0.41 and guidance of $0.40-$0.42. The company previously negatively pre-announced a -10% in total comparable sales. We remain Neutral on shares of ANF based on 1) decelerating total comparable sales, 2) FX headwinds and weak European sales trends that are likely to weigh more negatively on performance in the next few quarters, and 3) uncertainty regarding shift in merchandise assortment that we believe abandons legacy/logo product shoppers, while not yet connecting with new, fashion forward shoppers."

The firm is raising their below consensus 4Q14 EPS estimate to $1.21 from $1.02 (St at $1.33) based on a better than expected QTD comp; however, they believe that headline promotions are deeper yoy, offset by significantly reduced levels of clearance that is bolstering merchandise margins.

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 $27.84 yesterday.

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