UPDATE: Bank of America Downgrades Abercrombie & Fitch Co. to Underperform, Lowers PT as FX Compounds European Margin Drop

In a report published Tuesday, Bank of America analyst Lorraine Hutchinson downgraded the rating on

from Neutral to Underperform, and lowered the price target from $30.00 to $20.00. In the report, Bank of America noted, "We are downgrading to Underperform as we expect Street earnings expectations to fall dramatically. Our new F2015 EPS estimate of $1.20 is 35% below consensus. The 30% reduction in our estimate is due to currency and our expectation that a shrinking price gap will cause international margins to drop precipitously. Our $20 Price Objective represents a 17x P/E on our new F2015 estimates." Abercrombie & Fitch Co. closed on Monday at $24.11.