Piper Jaffray Reiterates “Overweight” Rating on Abercrombie (ANF)

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Analysts at Piper Jaffray on Friday published a research report defending their "Overweight" rating on clothing retailer Abercrombie & Fitch Co. ( ANF ).

The firm also backed its $86 price target on ANF, which suggests a 39% upside to the stock's Thursday closing price of $61.88.

A Piper Jaffray analyst commented, "Having visited stores in both London and Milan, we are encouraged by the continued momentum and buzz surrounding the brands. In the near term, we continue to believe that there is upside in our Q4 EPS estimate of $2.00 given the back-end weighted nature of the international store openings slated for this year. As detailed below, we believe there could be $0.08 to $0.10 in incremental EPS driven by the assumed 34 new Hollister's in 2H and the 4 new A&F flagships in Q4. Longer-term, we believe int'l expansion of Abercrombie flagship stores and Hollister mall stores will support 20-25% annual top-line growth."

Abercrombie shares were unchanged in premarket trading Friday.

The Bottom Line
Shares of Abercrombie & Fitch ( ANF ) have a 1.13% dividend yield, based on last night's closing stock price of $61.88. The stock has technical support in the $55-$60 price area. If the shares can firm up, we see overhead resistance around the $65-$70 price levels.

Abercrombie & Fitch Co. ( ANF ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 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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