Wedbush Reports Strong F12 Guidance On Abercrombie & Fitch

According to Wedbush, Abercrombie & Fitch ANF saw strong F12 guidance on aggressive int'l rollout. Wedbush reported that it attended ANF's Analyst Day in with presentations by the senior executive team. “Following the meeting, we expect shares to trade up given management's guidance for F12 EPS of $4.75 vs. consensus of $3.97 (while de-emphasizing prior 15% EBIT margin target) and outlining an ambitious global sales potential of $7.5B or higher by 2015. Though we are impressed with management's F12 EPS target, which exceeded expectations, we note the stock's recent outperformance and would prefer to become more constructive on a pullback as we remain concerned with the ability to increase U.S. store productivity given the domestic retail environment. We derive our new $60 price target by applying a 20x multiple (premium to historical average multiple of ~15x given int'l growth opportunity) to our new F11 EPS estimate of $2.95.” Abercrombie & Fitch closed yesterday at $65.57.