UPDATE: Citigroup Upgrades Abercrombie & Fitch to Neutral on Better Upside Visibility

Citigroup raised its rating on Abercrombie & Fitch

from Sell to Neutral and increased its price target from $32 to $42. Citigroup commented, "We do believe ANF has product, geographic, sector challenges ahead but EPS is now positioned to at least meet rather than miss 4Q, so we see limited near-term stock downside. Our view is that stock may persist at ~13x multiple in near-term. The Bear risk to our Neutral call is if mgmt is speaking too quickly before the turn as we do not yet notice greater or better product flow in-stores; also, average unit retails were slightly down in 3Q and ANF achieved 3Q without a substantial mix of improved product." Abercrombie & Fitch closed at $39.80 on Wednesday.