UPDATE: Citi Color On ANF Target Increase

Citi, which raised its PT on shares of Abercrombie & Fitch Co. ANF, is providing some color on the stock. “ANF delivered a remarkably strong setup for 2011/2012 at its analyst day,” Citi writes. “They tabled the margin concerns by moving to an EPS target and assuaged the bulls with a $4.75 earnings goal for 2012. We see ample levers to drive earnings. “The $4.75 EPS target for 2012 illustrates a more robust track for international. We estimate an international penetration rate of 30% in 2011 from under 20% in 2010. Unit growth is accelerating in both 2011 (45 units) and further in 2012 (50 units) from 19 new units in 2010; margins are targeted at 30% on a four wall basis.” Abercrombie & Fitch closed Tuesday at $65.57.