KeyBanc Downgrades Abercrombie & Fitch (ANF) to Sector Weight

KeyBanc downgraded Abercrombie & Fitch (NYSE: ANF) from Overweight to Sector Weight and removed its price target. Analyst Jessica Schmidt said channel checks point to increased promotions.

"Channel checks point to increased promotions, still overstored teen space, tepid consumer and continued tourist headwinds, which will likely make an already difficult turnaround even more complicated; we downgrade the stock to SW," said Schmidt.

"Our proprietary promotional database and channel checks suggest that promotions at Abercrombie and, to a lesser extent, Hollister are up from last year. We think these promotions, combined with continued headwinds from the overstored teen space, soft consumer demand and ongoing weakness in tourism will likely keep NT earnings under pressure," added the analyst.

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 $16.28 yesterday.

You May Also Be Interested In

• Cleveland Research Upgrades Dynatrace Inc. (DT) to Buy, 'optimism underlying fundamentals are likely to support upside'
• Jones Trading Starts Ellington (EFC) at Hold
• Infosys Technologies (INFY) PT Lowered to $18 at BMO Capital