Abercrombie & Fitch surges to new yearly highs after positive Earnings
B Riley Notes: Reported 3Q EPS of $0.30, above B. Riley FBR/consensus estimates of $0.20/$0.21. They are encouraged by ANF's omni-channel and brand initiatives, its cost/store rationalization, and Hollister product resonating with consumers. They remain on the sidelines until they see more evidence of consistent SSS improvement and an inflection in margins.
Telsey Group Notes: Increasing their price target to $17 from $12; Maintain Market Perform rating: They view ANF's 3Q17 report as a positive read on the direction of the business. The better than expected results against a heavy short interest position helped drive the shares up +20%. Comps continue to improve sequentially, Hollister is performing well, and the A&F brand is showing some signs of stabilization. They view the outlook for 4Q17 as improved visibility.
Price Action: Shares surged to new yearly highs during pre-market trading on Friday, remained bid most of the day;