Abercrombie & Fitch (NYSE:ANF) Major Growth Story Says FBR

FBR Capital see many things right about Abercrombie & Fitch (NYSE:ANF) and see them as a growth story about to happen.

"What we saw today with comps up 22% is a nice domestic recovery story. That is exciting to be sure, and it is outperformance to be clear. Critics talk about the expected deceleration in December and negative comps expected in January. What we see is a company that has become efficient and effective at using promotional tools to drive profitable sales. Furthermore, we point to the outperformance Abercrombie has seen versus key competitors. But, while we like the recovery, we are here for the growth. ANF is an emerging growth story. International is a major opportunity, growth is accelerating from here, and that growth is coming with higher margins and returns. The multiple on CY11 looks as if it is already reflecting the growth. However, recent conversations with management have given us increased confidence that CY12 earnings power is well above our prior viewpoint."

Abercrombie closed at $56.02, soaring $5.58, or 11.06 percent. FBR boosted their price target on them from $49 to $67, and maintain an "Outperform" rating on the retailer.