Janney Capital Downgrades Abercrombie & Fitch (ANF) to Sell
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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).
Shares of Abercrombie & Fitch closed at $22.30 yesterday.
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