UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Abercrombie & Fitch Co. on Continued Cautious Stance

In a report published Friday, Citigroup analyst Oliver Chen reiterated a Neutral rating on

, and raised the price target from $35.00 to $37.00. In the report, Citigroup noted, “ANF has done a good job identifying priorities for improving comp & full price selling. The key to this strategy is improving women's tops with quicker lead times, more tests, greater style differentiation and less internally competitive SKU counts. The hope is for improvement by back to school or 2/3Q14 & compares theoretically easily given 2Q's 2-year prior stack is -20%. Mgmt. also looks forward to abatement of Teen sector pressure (which could be risky if this does not happen). Instead of ANF, our preference for Holiday stock strategies is to buy defensive sequential momentum stock stories (TJX, ULTA) vs. turnarounds but ANF's valuation isn't that pricey, we acknowledge (ANF P/E 14x vs. Sector 18x & YTD -27%). We remain cautious on valuation & rate ANF Neutral w/ a revised target price of $37 on 13x 2015E EPS.” Abercrombie & Fitch Co. closed on Thursday at $34.97.