Several analysts have recently weighed in on Abercrombie & Fitch Co. (NYSE:ANF), issuing notes to investors. Eric Beder of Wunderlich reiterated their Sell rating on the stock 2 month ago with a $15.00 price target, or 26.29% downside to the last closing price. According to Tip Ranks, Eric Beder is ranked 1,435 out of 3,800 analysts. The stocks he covers yield an average of 45% growth in the one year following his recommendations.
Brian Tunick of RBC Capital Markets also released a note to investors 2 month ago stance on Abercrombie.
“When we launched with an Underperform in May on ANF, our view was that top line stabilization at ANF was several quarters away and an elevated international cost structure would lead to ongoing EBIT declines on already thin margins. In our view, the second quarter in a row of sequential comp moderation, including (1%)/ (4%) Hollister/international comps in 2Q15 are evidence that the turnaround efforts at ANF are yielding results in Hollister.”
Brian also added, “While sentiment is negative (33% of shares short), the 2Q15 results are giving the $0 EPS bear case a near-term breather, as half the business is moving in a better direction. Certainly, signs of a knit top and denim cycle and a struggling competitive environment bode better for Hollister as it gets off the mat. At 4.5x EBITDA, we see catalysts which can support multiple expansion in 2H15 including: 1) sequential gains at Hollister (stacks pointing to positive 2H comps); 2) full quarters’ benefits of international pricing changes; 3) AUC buffers in 3Q15 and stabilizing merch margins in the US; 4) inventory and expense discipline; and 5) management appearances at upcoming conferences.”
Another analyst Rick Patel of Stephens Inc issued a note 2 month ago on the stock and $16.00 price target.
“Our price target is based on a target P/E of 17.7x our 2015 EPS estimate. This reflects a premium to the peer group multiple of 14x as we anticipate Abercrombie’s EPS growth to outpace the group this year and next.”
Abercrombie & Fitch Co. (NYSE:ANF) is a leading global specialty retailer of high-quality, casual apparel for Men, Women and kids with an active, youthful lifestyle under its Abercrombie & Fitch, abercrombie kids and Hollister Co. brands. At the end of the second quarter, the Company operated 783 stores in the United States and 171 stores across Canada, Europe, Asia and the Middle East.
On Sept. 8, 2015 Abercrombie & Fitch Co. (NYSE:ANF), -2.30% Hollister brand announced its 2015 anti-bullying campaign, All Equal. In partnership with indie-pop siblings, Echosmith, known for their hit single, ‘Cool Kids’, the program helps increase anti-bullying awareness. Now in its third year, the campaign continues to gain momentum and aims to reach more than 1 million middle and high school students around the world this year. Since launching the initiative in 2013, the company has donated more than $400,000 to supporting causes, reached over 750,000 students and awarded scholarships to 20 deserving students. “Many of our customers are affected by the profound and lasting impact that bullying can have,” said Fran Horowitz, Brand President of Hollister. “We are passionate about supporting this cause. Our goal in bringing the All Equal campaign to schools is not only to raise awareness, but to provide students with the tools and resources they need to stand up against bullying.”
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