Janney Capital Downgrades Abercrombie & Fitch (ANF) to Sell

May 29, 2015 6:18 AM EDT
Get Alerts ANF Hot Sheet
Price: $37.81 -1.43%

Rating Summary:
    13 Buy, 23 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 8
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Janney Capital downgraded Abercrombie & Fitch (NYSE: ANF) from Neutral to Sell with a price target of $15.00 (from $17.00), saying the company will continue to lose market share.

Analyst Adrienne Yih believes: 1) negative comps may persist, 2) uncertainty of attracting new customer base, and 3) EPS risk.

"We believe a ~35% short position caused a short squeeze on shares," Yih commented. "ANF is changing nearly everything about the legacy business – product, store ops, pricing, logo/fashion content, store design, & target audience. Strategies that refocus on a new target are some of the most difficult turns to effect and can leave a brand in “no man’s land,” having lost their loyal customer, but not yet connecting with their new customer."

The firm is lowering FY15 EPS estimate to $0.38 from $0.71 (versus consensus of $0.91) and FY16 EPS estimate to $0.40 from $0.66 (versus consensus of $1.11).

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 $22.30 yesterday.

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