Seeking Alpha
Editor's notes: ANF's issues look purely operational to analyst Shaun Currie, who thinks the low valuation is an invitation for an LBO. 20% or more upside.

There have been many articles stating that the teen retailers are prime targets for LBOs. I do believe this to be true considering the balance sheets and valuations, but I believe that Abercrombie & Fitch (ANF) would be the most attractive LBO candidate of the teen retailers from a strategic perspective. Though Aeropostale (ARO) is attractive because of its smaller size, I believe that its company-specific issues and issues related to fashion may end up being too much to get a private equity firm interested. American Eagle (AEO) is on the soundest footing from an operations perspective, has less cost levers to pull, and trades at the highest EBITDA valuation.

On the other hand,...

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