Analyst Considers A&F (ANF) LBO Potential as Investors Take Profits

An analyst at Cowen this morning responded to Wednesday afternoon's rumors of private-equity interest for Abercrombie & Fitch (NYSE: ANF). The stock jumped nearly 3 percent into Wednesday's close amid the chatter.

The Cowen analyst said a leveraged buy out of A&F would make sense as a PE bidder would likely receive a favorable internal rate of return. The analyst suggested an interested party could come in at a 30 percent premium from Wednesday's closing price of $53.53.

Cowen maintains an Outperform rating on shares of Abercrombie & Fitch.

Traders seem to be taking profits Thursday afternoon following the late-day surge on Wednesday. A&F shares last traded at $53.07, down about 0.85 percent for the session.

To track all the market-moving analyst action on shares of A&F, visit our Analyst Ratings page.

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