Morgan Stanley Sees Full Valuation For Abercrombie & Fitch

In a report published Friday, Morgan Stanley analyst Kimberly C. Greenberger reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “The next few years should prove whether ANF is a rebounding global brand that deserves a mid-teens multiple or a retailer on the downside of its lifecycle. ANF is likely to remain a highly volatile stock with a wide range of potential outcomes. International store growth is a major earnings driver, but ANF comps have been consistently negative. We think the risk/reward is evenly balanced and remain EW. "Potential margin benefits from new cost cutting initiatives and online mix shift should help offset some impact from our weakening same store sales outlook. Large-scale buybacks or other potential strategic actions could boost the stock.” Abercrombie & Fitch closed on Thursday at $37.14.