Needham & Company Reiterates a 'Buy' on Abercrombie & Fitch (ANF); Long Term Growth Story Still Intact,

Needham & Company reiterates a 'Buy' on Abercrombie & Fitch (NYSE: ANF) price target lowered from $86 to $69.

Needham analyst says, "At ~10.5x our FY12 EPS estimate of $4.57, ANF is trading well below the sector average of ~13x, and below its long term organic growth rate of 18% to 20%. International sales (~30% by 2012) grew 56% in Q3, are higher margin and represent the future growth opportunity for ANF while the U.S. business should improve with plans to raise AUR. Given the renewed earnings power, we think fair market value for ANF is ~15x our FY12 EPS estimate, which is still below its growth rate of 18% to 20%."

"We are decreasing our F4Q & FY11 EPS estimates to $1.64 & $2.83, respectively, from $1.88 & $3.22...We are adjusting our F1Q, F2Q, F3Q, F4Q & FY12 EPS estimates to $0.36, $0.67, $1.12, $2.42 & $4.57, respectively, from $0.40, $0.66, $1.15, $2.54 & $4.75 to reflect conservatism due to the uncertainty of the macro environment in Europe."

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 $48.10 yesterday.

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