UPDATE: Wunderlich Initiates Coverage on Abercrombie & Fitch Co.

In a note released early Tuesday morning, Wunderlich analyst, Eric Beder Initiated coverage on Abercrombie & Fitch Co.

with a Buy and $48 price target. Beder wrote, "We believe the company is among the best positioned players for this back-to-school season with tight inventories, a key focus on cost savings, and a concerted effort to drive fashion excitement and emphasis on improving overall returns." Beder noted that Abercrombie has continued to "aggressively" buy back shares and the company's strong cash position should support further repurchases. For fiscal 2015 and '16 Beder is predicting an EPS f $2.41 and $2.93, respectively, both of which are above consensus. Beder concluded by suggesting investors buy before the company's second quarter earnings.