Wolfe Research Downgrades American Eagle Outfitters (AEO) to Peerperform (Earlier)
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Wolfe Research downgraded American Eagle Outfitters (NYSE: AEO) from Outperform to Peerperform.
Analyst Adrienne Yih commented, "As a reminder, our ratings are relative ratings within our coverage universe, and as such, we believe for 2017 there are investment opportunities that present a better risk/reward profile. We are downgrading AEO to Peer Perform from Outperform based on 1) two-year successful recovery back to ~10%+ operating margins, higher than any other Teen retailer, 2) deeper YoY promotional cadence offset by average unit cost (“AUC”) reduction, 3) ongoing competitive pricing environment, particularly in the Teen sector, with Aeropostale remaining as a going concern into 2017 with ~400 stores, and 4) decelerating sales-to-inventory spread and GMROI peaking. We believe shares reflect the positives, including a new AE brand fall marketing campaign, lower AUC, and aerie momentum."
Shares of American Eagle Outfitters closed at $18.29 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JPMorgan Cuts Teva Pharma (TEVA) to Neutral Amid Challenging Generic Environment
- UPDATE: SunTrust Robinson Humphrey Downgrades Pennsylvania Real Estate Investment Trust (PEI) to Hold
- UPDATE: SunTrust Robinson Humphrey Downgrades Health Care REIT (HCN) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!