UPDATE: Topeka Capital Markets Initiates Coverage on Abercrombie & Fitch Co. with Hold Rating, $50 PT on Challenges Ahead

In a report published Thursday, Topeka Capital Markets analyst Dorothy S. Lakner initiated coverage on Abercrombie & Fitch Co.

with a Hold rating and $50.00 price target. In the report, Lakner noted, “We are initiating coverage of ANF with a Hold rating and a $50 PT. After a period of significant comp declines in its domestic business in 2008-2009 and significant comp declines in Europe given the macro issues there, ANF results are improving, both top and bottom line, though still very far from prior peaks, or even to levels to which it has wanted to recover. While we see ANF headed in the right direction, given the challenges still facing ANF both domestically and internationally, we prefer to stay on the sidelines for now, but could turn more positive as we hear more about expense initiatives at the end of 1Q13.” Abercrombie & Fitch Co. closed on Wednesday at $49.18.