Jefferies Says Risk/Reward Attractive on Abercrombie & Fitch, but Still Cuts Target, Estimates (ANF)

By
A A A
Share |

Teen clothing retailer Abercrombie & Fitch Co. ( ANF ) on Monday caught some bullish support from analysts at Jefferies & Co.

The firm said ANF shares are "ultra cheap" right now, but lowered its price target from $70 to $60. That new target still suggests nearly a 100% upside to the stock's Friday closing price of $30.71.

A Jefferies analyst commented, "We hosted meetings with mgmt in London and while no big changes came through a few things are clear: 1) the brands have global appeal; 2) the global growth outlook is still visible; 3) margin tailwinds are coming; and 4) cash flow generation remains very strong. Against the backdrop of Europe fears, neg. sentiment, and cheap valuation, risk/reward is very attractive and we believe it is a good time to accumulate positions."


Still, the firm lowered its second quarter and full-year earnings estimates for the company.

Abercrombie shares were mostly flat in premarket trading Monday.

The Bottom Line
Shares of Abercrombie & Fitch ( ANF ) have a 2.28% dividend yield, based on Friday's closing stock price of $30.71. The stock has technical support in the $24-$25 price area. If the shares can firm up, we see overhead resistance around the $35-$36 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

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

50%

Most Active by Volume

85,117,424
  • $6.78 ▲ 11.88%
77,261,676
  • $17.53 ▲ 1.56%
61,066,548
  • $6.90 ▲ 2.99%
56,847,440
  • $112.65 ▲ 2.96%
52,788,366
  • $7.78 ▲ 1.83%
50,761,400
  • $25.14 ▲ 2.91%
47,781,237
  • $45.35 ▲ 10.18%
45,664,909
  • $7.17 ▲ 2.14%
As of 12/18/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com