NEW YORK (TheStreet) -- Shares of Abercrombie & Fitch (ANF) were taking a hit, sharply lower by 6.55% to $20.84 on heavy volume in midday trading Friday, after analysts at Janney Capital and SunTrust issued negative notes on the teen apparel retailer this morning.
The company was downgraded to "sell" from "neutral" at Janney Capital. The firm also cut its price target to $15 from $17, based on expectations of negative comps, uncertainty of attracting a new customer base, and earnings per share risk.
Janney added that Abercrombie has lost its loyal customer, but has yet to connect with a new customer base.
Also, SunTrust lowered its price target to $30 from $35, but maintained its "buy" rating this morning.
Yesterday, the teen apparel retailer reported a loss of 54 cents per share for the first quarter, compared to a loss of 34 cents per share analysts were expecting.
Same-store sales declined 9% in the U.S. and 7% internationally in the period.
About 3.56 million shares have exchanged hands as of 12:22 p.m. ET today, compared to its average trading volume of about 2.46 million shares a day.
New Albany, Ohio-based Abercrombie & Fitch is a specialty retailer that operates stores and direct-to-consumer operations.
The company sells a varitey of products, including casual sportswear apparel, personal care products, and accessories.
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, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow."
You can view the full analysis from the report here: ANF Ratings Report