Abercrombie & Fitch added to Franchise List at Jefferies Jefferies added Abercrombie & Fitch to its Franchise List, making the stock one of its highest conviction calls. The firm believes A&F is positioned well for operating margin expansion and earnings growth and it views the stock's risk/reward as very attractive at current levels. Jefferies reiterates a Buy rating on Abercrombie with a $60 price target.
American Eagle downgraded to Sell from Neutral at Goldman Goldman Sachs downgraded American Eagle (AEO) to Sell saying it sees 29% downside risk over the next six months. Goldman believes declining mall traffic and "aggressive competition" from low cost stores puts the retailer in a multi-year period of diminishing productivity, margins, and returns. Its six-month price target for American Eagle is $12. Shares of the retailer closed yesterday up 17c to $16.92. Goldman lists Ann Inc. (ANN), Abercrombie & Fitch (ANF) and American Eagle as its top sell ideas in the Specialty Apparel space. Its lone Buy rated name in the group is Urban Outfitters (URBN).