Piper Jaffray Reiterates Overweight Rating, $40 PT on Abercrombie & Fitch

In a report published Wednesday, Piper Jaffray & Co. reiterated its Overweight rating and $40.00 price target on Abercrombie & Fitch Co.

. Piper Jaffray noted, “We are reiterating our Overweight rating on ANF shares following the company's strong FQ3 results, which outpaced even our above consensus estimate. Comp sales declined 3% versus our consolidated high-single digit decline estimate and swift responsive initiatives at the store & channel level (stores & distribution) resulted in better operating margin rates. Roughly 20 cents was tied to improved comp and leverage with 6-7 cents tied to tax rate and 3M shares repurchased. Guidance for FQ4 calls for mid-single digit comp decline, effectively passing through current rates with an element of conservativism and full year earnings figures are moving higher. On balance, shares are likely to be strong in today's trading session, backed by increased investor confidence in the company's ability to effect small steps toward business model recovery.” Abercrombie & Fitch Co. closed on Tuesday at $31.18.