Bank Of America Previews Stock Vote For ANF

Bank of America is maintaining its Buy rating and its $90 price target on Abercrombie & Fitch ANF in its preview of the company's incentive vote, set to occur on Thursday. Says Bank of America, in its report, “Abercrombie will request approval of a new long-term incentive plan at the company's annual shareholder meeting this Thursday, June 16th. The 10-Q reviews the potential consequences of not approving a new plan. If there are not enough shares remaining in existing plans to settle outstanding share-based awards, a portion of the awards may have to be settled in cash, which would result in liability classification of such awards. If this occurs, changes in the fair value of outstanding awards could create significant earnings volatility. We expect shareholders to approve a new plan and for this scenario to be avoided, but we will watch for announcements regarding a new plan late this week.” ANF closed yesterday at $65.61.