Piper Jaffray Maintains Overweight, $70 Target on Abercrombie & Fitch

Piper Jaffray reiterates its Overweight rating and $70 target price on Abercrombie & Fitch (NYSE: ANF) as it revises estimates on higher divisional inventories, which could lead to weaker margins.

Piper Jaffray says, "we lower our FQ4 EPS from $1.55 to $1.48 (consensus: $1.56). We reiterate our $4.65 for next year (consensus: $4.19). We believe there are further opportunities to increase domestic productivity from door closures and improving AURs, stabilization in Europe is likely with lower-price point merchandise in Spring, and the Asian expansion remains incremental to most long-term estimates."

ANF closed at $46.80 a share yesterday.