UPDATE: J.P. Morgan Reiterates Neutral Rating, Lowers PT on Abercrombie & Fitch

In a report published Monday, J.P. Morgan & Co. reiterated its Neutral rating on Abercrombie & Fitch

, but lowered its price target from $38.00 to $30.00. J.P. Morgan noted, “At 7.6% in 2011 (vs. 10.7% and 15.2% five- and ten-year averages), ANF's margins have likely troughed as domestic store closures should help remove margin dilution as the higher-margin international business continues to grow as a percentage of the total mix (even as it declines to the stated 30% four-wall margins). Domestically, ANF has lost over 30% of its sales productivity from peak 2007 levels. The domestic landscape appears to be showing signs of improving with more normalizing inventories, however, competition between AEO, ARO and others including fast fashion retailers such as H&M and Forever 21 remains. We believe the company will continue to work on regaining productivity domestically through closures of underperforming stores (management noted that the top 250 stores are at comparable margins to the international stores).” Abercrombie & Fitch closed on Friday at $29.37.