Jefferies on Abercrombie & Fitch: Awful 4Q Does Not Matter

Jefferies & Company has published a research report on Abercrombie & Fitch ANF after the company's "awful" 4Q. In the report, Jefferies writes, "4Q was awful, but it does not matter, in our view. What matters now is that 2012 expectations are low, the long term growth strategy is on track, cash flow and balance sheet are robust, and the current risk/reward for this stock is extremely favorable. Despite some stores comping negative, which is a function of the natural maturity curve, tough economic backdrop, and some poor real estate choices, international stores continue to run above planned opening levels and mgmt's long term assumed goals. We believe ANF has the right international strategy, right brands, and the ability to execute." Jefferies maintains its Buy rating and $70 price target on Abercrombie & Fitch, which is currently trading up $5.26 from yesterday's $44.59 closing price.