UPDATE: Credit Suisse Upgrades Abercrombie & Fitch Co. on Multiple Positive Factors

In a report published Tuesday, Credit Suisse analyst Christian Buss upgraded the rating on

from Neutral to Outperform, and raised the price target from $36.00 to $52.00. In the report, Credit Suisse noted, “Abercrombie & Fitch Co. reported 4Q13 EPS upside of $1.34, versus our $0.96 and consensus for $1.03 on much lower than anticipated SG&A expense. The big news however, is that the company is finally addressing a premium pricing strategy that has exacerbated challenging underlying demand conditions. "We expect a more price-competitive strategy to lead to a return to positive earnings momentum when combined with: 1) Aggressive cost controls; 2) Continued emphasis on appropriate square footage reduction in the U.S.; 3) Accelerated investments in eCommerce; 4) Tighter control of inventory; and 5) Renewed emphasis on return of cash to shareholders. As a result, we are upgrading from Neutral to Outperform and increasing our TP to $52 from $36.” Abercrombie & Fitch Co. closed on Monday at $39.49.