Shares of Abercrombie Fitch (NYSE: ANF) are up 10% this week as of 3:30 p.m. ET Friday, according to data provided by S&P Global Market Intelligence, after a notable analyst upgraded shares of the clothing retailer. 

In a note to clients Tuesday, Jefferies analyst Corey Tarlowe reiterated the firm's buy rating and $65-per-share price target on Abercrombie Fitch stock. Shares are trading around $60 as of this writing. Tarlowe detailed a meeting in which Abercrombie Fitch management highlighted the ongoing turnaround of their Hollister business, while simultaneously pointing to the strength of Abercrombie's women's business as a leading indicator of impending improvements on the men's segment.

"We believe the market underestimates the impact of occupancy reductions on ANF's go-forward operating results," Tarlowe said, adding that the company's margin performance has been stronger than anticipated of late.

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Source Fool.com