Abercrombie & Fitch: shares fall after downgrade

(CercleFinance.com) - Abercrombie & Fitch shares fell on Thursday after Wedbush downgraded the US fashion retailer from "neutral" to "underperform" on valuation grounds.


Driven by expectations for strength in revenues, Abercrombie shares have risen 41% year-to-date, outpacing a 9% gain in the S&P Retail Index over the same period, Wedbush said in a research note.

While the US broker believes that the company will meet or exceed the consensus for the first quarter, it also cites "less visibility" in the quality of revenue growth, given a sharp increase in discounting.

Wedbush said it sees 20% downside potential to its 23-dollar price target.

Abercrombie's shares were 3% down at 28.3 dollars in early-morning trading on the New York Stock Exchange.

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