Dallas, Texas 05/05/2014 (FINANCIALSTRENDS) – Abercrombie & Fitch Co.(NYSE:ANF) is on a roll, with the apparel retailer with specialized product range reporting a strong rally on the stock markets. The rally was noted following a substantial upgrade by analysts Jefferies. Their research note had recommended a Hold over Buy.
Considering that the upbeat recommendations soon began to pour in from other analysts as well, the prices rallied and are continuing to rally in the next business day as well!
Konik predicts 36% upside
Other analysts who are driving this rally include – Randal Konik, the analyst moving the target price from the earlier $37 to an ambitious $50. The upward price target revision, according to Konik was based on the 36% upside, the stock currently holds.
In effect, it has led to those investors who are averse to momentum loss that the company saw in the past year due to the fall in prices, now seeking out Abercrombie & Fitch Co.(NYSE:ANF), thanks to research notes by Konik and Co.
Konik has indicated in his sentiment for this stock thus: “Amidst a tough retail backdrop, mgmt has taken numerous actions of late that we believe position the company very well for significant operating margin expansion (at least 300 bps over the next few years from 5.4% in FY’14) and EPS growth as brand credibility is restored and sales recover,”
Analyst Valuation of ANF: attractive
Abercrombie & Fitch Co.(NYSE:ANF) dream run northwards on the stock price market is definitely attributed to analysts’ draw that the current valuation is hugely ‘attractive entry point.’ The stock definitely has the balance sheet which will allow the company to see much forward Profit and Earnings though on the lower side.
ANF with its positive attributes will definitely offer much room for growth for investors with this scenario on play!