NEW YORK (TheStreet) -- Abercrombie & Fitch (ANF) - Get Abercrombie & Fitch Co. Class A Report stock was upgraded to "buy" from "hold" with a $24 price target at StifelNicolaus on Thursday morning.

"Our outlook regarding ANF shares has grown more favorable," Stifel said in a note.

Stifel believes that Abercrombie has improved its merchandise assortment along with better talent and inventory management. Sales have accelerated despite reduced promotions, the firm said.

The retailer has also cut costs, which makes growth more stable, according to Stifel.

Abercrombie released its fiscal 2015 second quarter earnings results on Wednesday. The company reported earnings of 12 cents per diluted share on $817.8 million in sales. This beat analysts' expectations far a loss of 4 cents per share on sales of $811.5 million.

Shares of Abercrombie were down 0.37%% to $18.84 in late afternoon trading on Thursday.

TheStreet Recommends

Separately, TheStreet Ratings team rates ABERCROMBIE & FITCH as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate ABERCROMBIE & FITCH (ANF) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."

You can view the full analysis from the report here: ANF Ratings Report

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