Abercrombie & Fitch’s Estimates Cut, but Target Raised, at Wedbush (ANF)

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Teen clothing retailer Abercrombie & Fitch Co. ( ANF ) on Tuesday caught some tepid commentary from analysts at Wedbush Securities.

The firm maintained its "Neutral" rating on ANF but raised its price target from $43 to $46. That new target still suggests a small downside to the stock's Monday closing price of $48.95, however.

A Wedbush analyst commented, "We are lowering our Q1 Operating EPS to $0.00 from $0.06, as we now expect gross margin deterioration of ~500 bp, relative to management's guidance for down (400-500) bp. We look for a Q1 comp of (4)% vs. +10% LY, below current consensus' (0.5)%, as gross margin remains depressed from higher input cost and competitive pressures and dips (490) bps to 60.1%, while SG&A declines 30 bps to 60%. Consensus Q1 OpEPS estimate is $0.01."

Abercrombie & Fitch shares were mostly flat in premarket trading Tuesday.

The Bottom Line
Shares of Abercrombie & Fitch ( ANF ) have a 1.43% dividend yield, based on last night's closing stock price of $48.94. The stock has technical support in the $41-$45 price area. If the shares can firm up, we see overhead resistance around the $53 price level.

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.

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