Janney Montgomery Scott Keeps Buy On Abercrombie & Fitch (ANF) Despite Macro and Margin Concerns
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Price: $104.82 -0.32%
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 11 | New: 26
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 11 | New: 26
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Janney Montgomery Scott reiterated thier Buy rating and $96 target on Abercrombie & Fitch (NYSE: ANF) following Q2 results and macro and margin concerns.
The firm notes that ANF posted impressive Q2 EPS, which topped Street estimates and posted 2Q11 comp of +9% versus Retail Metrics consensus of +6.1. As expected, the company did not provide specific EPS guidance; the Street is currently at $0.82 for 3Q11. The company did, however, mention that it will face low double digits cost inflation in 2H and did not elaborate on potential gross margin pressure, Janney's analsyt notes. The company continues to remain comfortable with its EPS goal of $4.75 for FY12 (barring a double dip recession in the US or a major decline in the Euro).
"Although the company experienced strong momentum through the second quarter, management appears concerned as it looks to the back half of the year given the uncertainty of the macroeconomic environment. We believe these concerns have investors "spooked," which has caused the stock to sell off, but given the strong momentum experienced in 2Q11 and incremental sales coming from international, we reiterate our BUY rating."
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 $71.02 yesterday.
The firm notes that ANF posted impressive Q2 EPS, which topped Street estimates and posted 2Q11 comp of +9% versus Retail Metrics consensus of +6.1. As expected, the company did not provide specific EPS guidance; the Street is currently at $0.82 for 3Q11. The company did, however, mention that it will face low double digits cost inflation in 2H and did not elaborate on potential gross margin pressure, Janney's analsyt notes. The company continues to remain comfortable with its EPS goal of $4.75 for FY12 (barring a double dip recession in the US or a major decline in the Euro).
"Although the company experienced strong momentum through the second quarter, management appears concerned as it looks to the back half of the year given the uncertainty of the macroeconomic environment. We believe these concerns have investors "spooked," which has caused the stock to sell off, but given the strong momentum experienced in 2Q11 and incremental sales coming from international, we reiterate our BUY rating."
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 $71.02 yesterday.
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