Nomura Securities Maintains a 'Buy' on Abercrombie & Fitch (ANF); Revising Estimates and Reducing PT

Nomura Securities maintains a 'Buy' on Abercrombie & Fitch (NYSE: ANF) price target lowered from $80 to $73.'

Nomura analyst, Paul Lejuez, said, "With yesterday’s release of 3Q sales, there was a bunch of bad news: (1) Europe slowed, (2) London and Milan flagships turned negative, (3) Japan and Canada remain weak, (4) Although U.S. comp accelerated, they bought the sales via promotions, and (5) AUR was +1% in USD vs. +mid single digits in 2Q11. We believe several items work in their favor to help offset the pressure from the items above: (1) MG&A can be lower than management’s 3Q guidance, (2) Currency has worked in their favor over the past several weeks, (3) They have flexibility on store payroll as trends slow. We are reducing our 2011E EPS from $3.24 to $3.01 and 2012E from $4.50 to $4.18. Although we maintain our Buy rating, there are now more risks to the ANF story."

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 $59.26 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Canaccord Downgrades York Space Systems (YSS) to Hold, 'Supply chain and contract timing uncertainty'
• BWS Financial Downgrades Inter Parfums (IPAR) to Sell
• Nomura/Instinet Upgrades Genting Singapore (GENS:SP) (GIGNY) to Neutral