BofA/Merrill Lynch Downgrades Abercrombie & Fitch (ANF) to Underperform

BofA/Merrill Lynch downgraded Abercrombie & Fitch (NYSE: ANF) from Neutral to Underperform with a price target of $20.00 (from $30.00) saying FX compounds European margin drop.

Analyst Lorraine Hutchiinson said they expect Street earnings expectations to fall dramatically. The firm now sees 2015 EPS of $1.20 which is 35% below the consensus. The cut is due to currency headwinds and expectations that the shrinking price gap will cause intl margins to drop sharply.

The firm cut 2015 EPS from $1.52 to $1.45, FY 2016 EPS from $1.73 to $1.20 and FY 2017 EPS from $1.95 to $1.00.

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 $25.78 yesterday.

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