UBS Maintains a 'Neutral' on Abercrombie & Fitch (ANF); Gross Margin Takes Back Seat; Comp Key Lever

UBS maintains a 'Neutral' on Abercrombie & Fitch (NYSE: ANF), PT increased from $74 to $78.

UBS analyst says, "ANF remains best-positioned teen name, but are gains sustainable in 2H? - We continue to view ANF as a near-term winner within teens based on better product, promotions, and international strength. Q1’s beat was impressive (particularly gross margin), but we question whether the int’l mix shift will be enough to combat sourcing cost pressures in 2H. It remains unknown whether the Q3 ticket price increases will be accepted in the US and even abroad...We are raising our Q2 estimate to $0.29 from $0.28, FY11E to $3.24 from $3.03." (FY12 EPS estimate raised also from $4.68 to $4.77)

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 $75.69 yesterday.

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