Teen clothing retailer Abercrombie & Fitch Co. (ANF) on Monday caught some bullish support from analysts at Jefferies & Co.

The firm said ANF shares are “ultra cheap” right now, but lowered its price target from $70 to $60. That new target still suggests nearly a 100% upside to the stock’s Friday closing price of $30.71.

A Jefferies analyst commented, “We hosted meetings with mgmt in London and while no big changes came through a few things are clear: 1) the brands have global appeal; 2) the global growth outlook is still visible; 3) margin tailwinds are coming; and 4) cash flow generation remains very strong. Against the backdrop of Europe fears, neg. sentiment, and cheap valuation, risk/reward is very attractive and we believe it is a good time to accumulate positions.”

Still, the firm lowered its second quarter and full-year earnings estimates for the company.

Abercrombie shares were mostly flat in premarket trading Monday.

The Bottom Line
Shares of Abercrombie & Fitch (ANF) have a 2.28% dividend yield, based on Friday’s closing stock price of $30.71. The stock has technical support in the $24-$25 price area. If the shares can firm up, we see overhead resistance around the $35-$36 price levels.

Abercrombie & Fitch Co. (ANF) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

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