Abercrombie & Fitch Upgraded to “Buy” at Brean Murray; Valuation Attractive (ANF)

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Teen clothing retailer Abercrombie & Fitch Co. ( ANF ) 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 ( ANF ) 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. ( ANF ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com

This article appears in: Investing , Stocks

Referenced Stocks: ANF



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