UPDATE: Piper Jaffray Reiterates Overweight Rating, Lowers PT on Abercrombie & Fitch Co. Ahead of FQ2 Earnings Report

In a report published Thursday, Piper Jaffray analyst Stephanie S. Wissink reiterated an Overweight rating on

, but lowered the price target from $59.00 to $58.00. In the report, Piper Jaffray noted, “Heading into the company's FQ2 earnings report next Thursday, we are maintaining our Overweight rating, but are reducing our EPS estimates in the context of a challenging and promotional July across teen retail. Key promotional events in the current back-to-school sales period appear to be driving improvements in traffic and conversion into August. We continue to remain positively biased heading into the second half as we anticipate a series of visibility catalysts, including a detailed cost rationalization plan that stands to re-architect the model to yield improved profitability and to lower the go-forward leverage threshold. An "event" trade is likely, and note that shares into the mid-50s would reasonably ‘price in' anticipated cost actions near-term. Fundamental improvement is needed to drive incremental share price appreciation.” Abercrombie & Fitch Co. closed on Wednesday at $50.22.