SunTrust 'Encouraged' Following Word Of A&F's New Brand Pres, Stock Remains 'Top Teen Pick'

In a research note released Wednesday, SunTrust analyst Pamela Quintiliano reiterated Abercrombie & Fitch

at Buy following the company naming a new brand president. The analyst did not change the price target of $47.00. Quintiliano said she remains “encouraged” as ANF improves merchandising and has a more controlled promotional cadence. She noted the "high caliber hire gives us confidence that ANF continuing to attract top talent, which bodes well for pending Hollister brand president announcement." The analyst continued, “ANF continues to be our top teen pick.” Quintiliano believes Abercrombie is uniquely positioned as, unlike most companies, it controls its financial situation and the macro environment does not. The company should benefit from better gross margins, shorter development cycles, increased testing, updated marketing plans, and closer vendor collaboration, according to the SunTrust analyst. Shares of A&F closed up about 1.5 percent to $41.07 on Wednesday afternoon.