Deutsche Bank Upgrades American Eagle Outfitters (AEO) to Buy

August 15, 2016 7:16 AM EDT
Get Alerts AEO Hot Sheet
Price: $14.74 -1.47%

Rating Summary:
    21 Buy, 15 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Deutsche Bank analyst, Tiffany Kanaga upgraded American Eagle Outfitters (NYSE: AEO) from Hold to Buy with a price target of $22.00 (from $17.00).

The analyst recognizes that the call is a little late considering the the stock's upswing after a tough April and May, but there is still enough runway for an upgrade and with reduced risk levels with dept. stores noting apparel strength and a solid start to Back-to-School.

The analyst thinks AEO will beat 2Q expectations through continued strength in women's denim and aerie, and can carry momentum forward into 2H vs. easier compares with a positive mix shift, improvement in men's, and further acceleration internationally and online.

The valuation remains inexpensive vs. historicals and peers and the PT increases to $22 from $17 on 15x the FY17 EPS estimate of $1.44.

For an analyst ratings summary and ratings history on American Eagle Outfitters click here. For more ratings news on American Eagle Outfitters click here.

Shares of American Eagle Outfitters closed at $18.93 yesterday.

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