FBR Capital Maintains a 'Market Perform' on Abercrombie & Fitch (ANF); Stock Surges in Response to Analyst Day; Adjusts Numbers
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Price: $110.36 +0.95%
Rating Summary:
10 Buy, 25 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
10 Buy, 25 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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FBR Capital maintains a 'Market Perform' on Abercrombie & Fitch (NYSE: ANF), raises PT to $68.
FBR analyst says, "We were very impressed with the sales and operational initiatives as well as the long-term guidance outlined at the Abercrombie & Fitch analyst day. Our first instinct was to chase it here and get more constructive. Here's why we are not. First, the objective of $4.75 in EPS for 2012 is not that much better than our previous estimate of $4.56. Second, we believe clarity becomes obscured when companies give guidance for next year or some other out year without having EPS guidance for the current year. Management admits having low visibility to gross margins this year and seems to be suggesting we look beyond near-term choppiness. Third, we think we can get positive more opportunistically when the stock potentially reacts to near-term cost pressure or investment spending. We are absolutely not saying some of the long-term objectives outlined aren't better than we thought and achievable. They are. We simply think a better entry point will likely present itself."
For more ratings news on Abercrombie & Fitch click here and for the rating history of Abercrombie & Fitch click here.
Shares of Abercrombie & Fitch closed at $65.57 yesterday.
FBR analyst says, "We were very impressed with the sales and operational initiatives as well as the long-term guidance outlined at the Abercrombie & Fitch analyst day. Our first instinct was to chase it here and get more constructive. Here's why we are not. First, the objective of $4.75 in EPS for 2012 is not that much better than our previous estimate of $4.56. Second, we believe clarity becomes obscured when companies give guidance for next year or some other out year without having EPS guidance for the current year. Management admits having low visibility to gross margins this year and seems to be suggesting we look beyond near-term choppiness. Third, we think we can get positive more opportunistically when the stock potentially reacts to near-term cost pressure or investment spending. We are absolutely not saying some of the long-term objectives outlined aren't better than we thought and achievable. They are. We simply think a better entry point will likely present itself."
For more ratings news on Abercrombie & Fitch click here and for the rating history of Abercrombie & Fitch click here.
Shares of Abercrombie & Fitch closed at $65.57 yesterday.
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