UPDATE: Wunderlich Securities Downgrades Abercrombie & Fitch On Slashed Estimates

Courtesy of Benzinga.

In a report published Monday, Wunderlich Securities analyst Eric Beder downgraded the rating on Abercrombie & Fitch Co. (NYSE: ANF) from Hold to Sell, and lowered the price target from $30.00 to $17.00.

In the report, Wunderlich Securities noted, “We are slashing our estimates and target on Abercrombie & Fitch (ANF) and cutting our rating to Sell (from Hold) as we believe Street expectations (hopes) for any type of turn in FY16 are overdone and that ANF will remain under material pressure in both the domestic and international spheres on numerous levels. We believe both Abercrombie and Hollister have been unable to retain any pricing power as they switch away from logo-driven product, despite material cost cutting and store pruning. On the international front, we are worried over FX issues and what has been a domestic business highly dependent upon tourist-driven traffic. When combined with weak management credibility, we believe the pieces are in place for material disappointments when 4Q results are announced on March 4.”

Abercrombie & Fitch closed on Friday at $25.78.

Posted-In: Eric Beder Wunderlich SecuritiesAnalyst Color Downgrades Price Target Analyst Ratings