Nomura Securities Maintains a 'Neutral' on Abercrombie & Fitch (ANF); 3Q Incremental Information and Thoughts

Nomura Securities maintains a 'Neutral' on Abercrombie & Fitch (NYSE: ANF) price target cut from $60 to $56.

Nomura analyst, Paul Lejuez, says, "ANF missed sales, GM, and EPS in 3Q. Yet, management says it is committed to $4.75 in F12 EPS and moving full-steam ahead with at least 4-5 A&F flagships and 40+ international Hollister stores in F12. We have little doubt these stores are likely to open strong, but the increasingly uncertain maturity curve shifts the debate to what investors should pay for this growth. We are reducing our F11E EPS from $3.01 to $2.86 (vs cons $2.95) and our F12E EPS from $4.18 to $4.00 (vs cons $4.44) primarily to reflect the 3Q earnings miss and higher expenses than previously forecast. We are reducing our TP to $56, which represents 14x our revised F12 EPS of $4.00, in line with ANF’s historical average multiple in 2001-08, when it did not receive a premium for international growth."

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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