Teen clothing retailer Abercrombie & Fitch Co. (
) on Monday caught a big upgrade from analysts at Brean Murray
Carret & Co.
The firm said it boosted its rating on ANF to "Buy" with a $65
price target, suggesting a 31% upside to the stock's Friday closing
price of $49.61.
A Brean Murray analyst commented, "…we believe now is an apt
time to become more aggressive in ANF for a number of reasons: 1)
after entering 1Q with materially too much inventory, we believe a
warmer March has allowed the company to become more right sized in
terms of product exposure and should position them to be more
strategic going forward; 2) we believe both the market and costing
environments will be material positives going forward in FY13; 3)
on a cash adjusted basis the company is, by far, the cheapest of
the A's and, in our opinion, the player with the most rational
domestic and international unit story; and 4) on a technical basis,
the risk/reward is compelling."
Accordingly, the firm boosted its earnings estimates for ANF
through 2014. Abercrombie shares rose 79 cents, or +1.6%, in
premarket trading Monday.
The Bottom Line
Shares of Abercrombie & Fitch (
) have a 1.41% dividend yield, based on Friday's closing stock
price of $49.61. The stock has technical support in the $45 price
area. If the shares can firm up, we see overhead resistance around
the $53-$55 price levels.
Abercrombie & Fitch Co. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
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, as well as a detailed explanation of
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