Jefferies Says Time to Kick the Tires Again on Abercrombie & Fitch (ANF)

Jefferies made some positive comments on Abercrombie & Fitch (NYSE: ANF) following a meeting with management in London. They said the stock is 'ultra cheap' and its time to start kicking the tires again. That said, the price target was cut from $70 to $60 and numbers were taken down.

The firm comments, "We hosted meetings with mgmt in London and while no big changes came through a few things are clear: 1) the brands have global appeal; 2) the global growth outlook is still visible; 3) margin tailwinds are coming; and 4) cash flow generation remains very strong. Against the backdrop of Europe fears, neg. sentiment, and cheap valuation, risk/reward is very attractive and we believe it is a good time to accumulate positions."

Q2 EPS was cut from $0.40 to $0.35 and FY12 was cut from $3.75 to $3.55.

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 $30.71 yesterday.

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