UPDATE: J.P. Morgan Lowers PT on Abercrombie & Fitch from $38 to $30
J.P. Morgan maintained a Neutral rating on Abercrombie & Fitch (NYSE: ANF) and decreased its price target from $38 to $30.
J.P. Morgan wrote, “With deteriorating fundamentals weighing on results, ANF chose to cut FY12 EPS guidance to $2.50-$2.75 from $3.50-$3.75, which is predicated upon a 2H12 -10% comp and what we believe includes ~$0.20 related to FX impacts and a higher tax rate. In addition to the cut, the company highlighted their intention to significantly slow down its global expansion and reduction in target capex. We believe the company is taking the right decisions for its structural health; however, we remain sidelined until we can see a sign of troughing fundamental trends and a clear indication that management has a better rein on the business.“
Abercrombie & Fitch closed at $34.02 on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: J.P. Morgan