Ahead of the Bell: Friedman cuts target on A&F

Friedman, Billings, Ramsey analyst Adrienne Tennant lowered her price target to $86 from $93 in a note to investors Monday, implying she expects the stock to gain 13 percent.

Although she said she was "encouraged" by the company's overseas expansion effort, Tennant said shares will likely trade in "within range" in the short-term after the New Columbus, Ohio, company posted higher first-quarter profits but left its longer-term guidance unchanged. Shares have traded between $66.05 and $85.77 over the past 52 weeks.

Abercrombie & Fitch posted a first-quarter profit of 69 cents per share, beating Wall Street estimates by 3 cents per share. Its outlook for the first half of the year remained unchanged at $1.61 to $1.65 per share.

Tennant cut her full-year outlook by 4 cents per share to $5.73 per share. Analyst polled by Thomson Financial expect $5.69 per share, on average.

On Friday, shares gained 11 cents to close at $76.19.