NEW YORK ( TheStreet) - Provocative teen retailer Abercrombie & Fitch ( ANF) spiked more than 5% Friday as Bank of America/Merrill Lynch upgraded the shares to 'buy' from 'neutral.' Shares soared 4.2% to $51.70. BofA/Merrill analysts Paul Alexander and Lorraine Hutchinson said they changed their rating on the New Albany, Ohio-based retailer after seeing "a number of potential sources for earnings beats and catalysts that could improve sentiment and lead to higher earnings estimates," according to an investor note published today. The analysts raised their 12-month price target to $60 from $54 to reflect increased earnings estimates and peer average multiple, they said. The analysts also upped their 2013 full year earnings estimate by 8 cents to $3.30 a share "to reflect greater confidence in the company's profit initiatives." Also see: Abercrombie Plunges Amid Disappointing Earnings, Lowers Guidance "The stock has taken a step back after a mixed 1Q, but we think the quarter's worst problems were temporary and we now see numerous areas where Abercrombie could beat expectations, particularly next year," the analysts wrote, adding that cost cutting initiatives and strategies "boosting average unit retail (AUR) are not yet fully baked into numbers." The analysts also expect "acceleration" of comparable store sales. Year-to date, the stock has underperformed its peers. The S&P 500 Retailing Index is up roughly 21% since Dec. 31 compared to Abercrombie which gained 8% in the same time period. Also see: Abercrombie Forced to Apologize According to Bloomberg, roughly half of 30 analysts surveyed rate the company an equivalent of a buy while 40% have a hold rating on the shares. (Bloomberg recommendation data doesn't include BofA/Merrill's.) While Abercrombie trades a 15.2 times estimated earnings, its highest level in more than a year, according to a data compiled by Bloomberg, the BofA/Merrill analysts say there is still room for upside. Wall Street "has not yet fully appreciated the potential of Abercrombie's new AUR Initiative," the note said.