Analysts: Build Abercrombie Positions Aggressively and 3 More Research Notes to Review

Abercrombie & Fitch (NYSE:ANF): Susquehanna sees Abercrombie & Fitch’s business as challenged but believes that now is the time to aggressively build a position. The firm noted the company’s second-quarter results and guidance are below expectations and that near-term visibility remains cloudy but thinks the company possesses meaningful earnings power over the long term. The firm maintains its Positive rating but lowered its price target to $50 from $60.

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GameStop (NYSE:GME): Ascendiant has raised its estimates and price target to $66 from $56 for GameStop following the company’s second-quarter results and finds the current valuation attractive. The firm remains positive on GameStop, with a Buy rating.

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L Brands (NYSE:LTD): Morgan Stanley says L Brands continues to execute and that 2013 is tracking to 15 percent year-over-year growth versus 3 percent for the group. The firm reiterates its Overweight rating and raised its price target to $65 from $55.

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JPMorgan Chase (NYSE:JPM): Keefe Bruyette believes the likelihood of a JPMorgan break-up is “quite low” but said talk of a potential break-up has led it to evaluate such a scenario. Keefe Bruyette’s analysis indicates the sum of JPMorgan’s individual business lines is valued at a 30 percent discount to similar companies, which it views as high even with the litigation overhang. Further, if the bank were to be broken up, Keefe estimates it could free up nearly $20 billion in Basel 3 capital. The firm has an Outperform rating on the stock.

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