Oppenheimer Moves To The Sidelines On Abercrombie; Cuts PT To $30


Oppenheimer analyst Anna Andreeva downgraded shares of Abercrombie & Fitch (NYSE:ANF) to Perfrom and reduced her price target  to $30 (from $50), which represents a slight upside potential from current levels.

Andreeva explained, “While we remain constructive on the story longer term and valuation has now sharply compressed (stock historically bottoms ~$30), lack of visibility on brand turnaround domestically (especially at Hollister, 51% total sales, given heightened competition for younger teen customer) and mounting uncertainty around international (30% of sales, ~80% profits) make near-term earnings trajectory less clear. Lowering EPS ests. ’14/’15 to $1.64/ $1.90 (~5% EBIT margins); given still extremely robust productivity internationally ($5-$6M/store, 2x a domestic store) and profitability (4-walls internationally 10-12 points above domestic levels), it’s not clear where ANF’s margins bottom–we estimate cutting international 4-walls in half yields $1 of downside to total EPS.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anna Andreeva has a total average return of -0.4% and a 47.6% success rate. Andreeva has a -11.0% average return when recommending ANF, and is ranked #2512 out of 3365 analysts.