Abercrombie & Fitch Analyst Roundup

Abercrombie & Fitch Co. ANF reported Q3 financial results Wednesday and lowered its full fiscal year forecast.

The stock moved higher in spite of the results, trading at $28.75 Wednesday afternoon, up 3.27 percent.

Related Link: Abercrombie & Fitch Conference Call Highlights.

Below are highlights from analysts following the news along with current ratings and price targets.

Topeka - Hold, $26 price target

“ANF turned in an in-line 3Q after revising guidance much lower, with 4Q now also taking a dive. Comps may be somewhat improved thus far in 4Q, but that isn't saying much on two years of steep declines. ANF has made substantial progress on expense reductions as well as on better inventory management, but not enough progress has yet been made on assortments, more a 2015 opportunity. Given the nearly full makeover being undertaken at ANF, as well as the additional pressure from Europe, the continued cuts in guidance are not surprising--and we see very conservative guidance for 2015 in February.”

Mizuho - Neutral, $29 price target

“We remain cautious on ANF shares following below consensus forward guidance, in-line with our expectations, with lingering product issues in the U.S. and Europe.We believe the retailer may continue to struggle through Holiday and FY15 given the challenging domestic retail environment as well as heavy exposure of Europe (~27 percent of sales). Although we are encouraged by the team’s impressive efforts to reduce opex and AUC, we believe impact from the newly appointed brand presidents and initiatives underway may not aid earnings until 2H15.”

Wunderlich - Hold, $30 price target

“We believe that the future initiatives planned for ANF are already reaching a point where there are
legitimate worries that it is too little, too late. Further, with a continued offering of logo-based product, dismal comps, slow traffic, and highly promotional and competitive environment (which managed to wipe out $200 million in cost savings in FY15), the glory days of Abercrombie are long gone, and the once teen giant has fallen (and can not seem to get up). We are unsure when it will be able to rise again; we continue to remain on the sidelines.”