Abercrombie & Fitch price target lowered to $139 from $149 at Morgan Stanley

Morgan Stanley analyst Alex Straton lowered the firm’s price target on Abercrombie & Fitch to $139 from $149 and keeps an Equal Weight rating on the shares. A&F management raised Q4 sales guidance, but reiterated the operating margin outlook, which the firm calls “disappointing against expectations for better profitability flow-through.” This shortcoming sent the stock down 16% on the day and the firm thinks it “fuels the growing bearish narrative that both positive EPS revisions & flow-through are smaller from here,” the analyst tells investors.