Prudential Upgrades Abercrombie & Fitch
Prudential upgrades Abercrombie & Fitch (ANF ) to neutral from underweight.
Analyst Stacy Pak says her rationale for her upgrade reflects her belief that comparable sales in teen/young adult sector have continued to be pretty good.
She also notes that Abercrombie & Fitch's comparable sales and leverage will be better than she anticipated, selling, general and administrative costs exclusive of store expenses and bonus will likely grow with square footage.
Park raises her $2.76 fiscal 2006 (ending January) earnings per share estimate to $3.05 and $3.05 fiscal 2007 to $3.50. She raises her $45 target to $54.