UPDATE: Oppenheimer Downgrades Abercrombie & Fitch (ANF) to Underperform
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(Updated - January 3, 2017 9:07 AM EST)
Oppenheimer downgraded Abercrombie & Fitch (NYSE: ANF) from Perform to Underperform.
Analyst Anna Andreeva commented, "We are downgrading ANF to Underperform from Perform. While the stock was already a big laggard last year (down 55%, group down 2%), we think consensus estimates have further downside (we are 70% below the Street for '17) as the brands, especially A&F, remain in transition amidst increasingly more competitive teen landscape, international profitability is still eroding, and balance sheet concerns mounting (prepayment on term loan could question ANF's attractive 6% dividend yield). On EV/sales (0.2x), valuation looks washed out, although top line has been declining since '12 (we are $100M below the Street on sales for '17); elevated promotional stance over Holiday could put Street's 4Q16 gross margin expectations for down 20-40 bps at risk."
Shares of Abercrombie & Fitch closed at $12.00 yesterday.
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