Brean Capital Lifts Abercrombie & Fitch (ANF) Target to $49 on Blow-Out Q3
Brean Capital raised estimates and its price target on Buy-rated Abercrombie & Fitch (NYSE: ANF) from $42 to $49 following today's strong results and outlook.
FY13 and FY14 EPS projections go to $2.95 (From $2.55) and $3.50 (from $3.29), respectively.
"We believe, after an apparent somber period where the company was forced to become aggressively more promotional, the fruits of reducing inventories and closing lower performing stores is bubbling to the surface; with a better fashion sense, a deeper commitment to cost cutting and a more rational expansion strategy, we believe Abercrombie & Fitch is poised to return to prominence with investors. Furthermore, given the material discounting levels throughout the teen segment last year, with all the major players reducing inventory this year, we believe upside throughout the segment has continued to rise. Our new price target of $49 translates to 14x our FY14 EPS projection of $3.50; we believe this multiple is appropriate, as the company improves operating returns and continues maximize store performance."
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 $31.18 yesterday, with a 52 week range of $28.64-$57.56.
FY13 and FY14 EPS projections go to $2.95 (From $2.55) and $3.50 (from $3.29), respectively.
"We believe, after an apparent somber period where the company was forced to become aggressively more promotional, the fruits of reducing inventories and closing lower performing stores is bubbling to the surface; with a better fashion sense, a deeper commitment to cost cutting and a more rational expansion strategy, we believe Abercrombie & Fitch is poised to return to prominence with investors. Furthermore, given the material discounting levels throughout the teen segment last year, with all the major players reducing inventory this year, we believe upside throughout the segment has continued to rise. Our new price target of $49 translates to 14x our FY14 EPS projection of $3.50; we believe this multiple is appropriate, as the company improves operating returns and continues maximize store performance."
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 $31.18 yesterday, with a 52 week range of $28.64-$57.56.