NEW YORK (TheStreet) -- Credit Suisse upgraded Abercrombie & Fitch (ANF) to "outperform" from "neutral," set a $52 target price and increased its estimates. The firm noted that the apparel retailer is cutting costs.
"The big news...is that the company is finally addressing a premium pricing strategy that has exacerbated challenging underlying demand conditions," the firm wrote in a research note. "We expect a more price-competitive strategy to lead to a return to positive earnings momentum when combined with: 1) Aggressive cost controls; 2) Continued emphasis on appropriate square footage reduction in the U.S.; 3) Accelerated investments in eCommerce; 4) Tighter control of inventory; and 5) Renewed emphasis on return of cash to shareholders."
The stock was rising 6.35% to $41.55 at 9:43 a.m. on Tuesday.
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."