Piper Jaffray Maintains Overweight, $70 Target on Abercrombie

Piper Jaffray reiterates its Overweight rating and $70 target price on Abercrombie & Fitch ANF as it revisits the company's outlook through 2015. Piper Jaffray says, “In assessing the $7.5B revenue goal by 2015, we estimate the US makes up 55% of sales, Europe 34% and Other Int'l (Asia/Canada) 11%. In addition, we are conservatively assuming op margin rate can be 18% (recent peak: 20%; all-time peak: 23.5%), tax rate of 32% and share count of 90M. As such, we believe the earnings power by 2015 (FY16) at $10/share, which would imply a 30% CAGR from our conservatively published $4.65 EPS for next year.” ANF closed at $46.26 per share on Wednesday.