Brean Murray Cuts American Eagle (AEO) to Sell; Skeptical of Management
AEO Hot Sheet
Rating Summary:15 Buy, 8 Hold, 1 Sell
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Up: 16 | Down: 7 | New: 22
Brean Murray Carret & Company downgrades American Eagle Outfitters (NYSE: AEO) from 'Hold' to 'Sell' and establishes a $10 target price, citing inventory overhang concerns.
The firm notes that "While management talks about inventory discipline and the ability to shift sourcing, we remain highly skeptical and believe the company will remain under inventory and pricing pressure for the remainder of the fiscal year. We note after August, the same store sales and margin comparisons will become increasingly more difficult."
With shares of American Eagle down almost 5% to $11.49 amid the downgrade, Brean Murray's new price target implies potential downside of about 13%.
To see all the analyst action on shares of AEO, visit our Analyst Ratings page.
American Eagle Outfitters, Inc. operates as an apparel and accessories retailer in the United States and Canada.
The firm notes that "While management talks about inventory discipline and the ability to shift sourcing, we remain highly skeptical and believe the company will remain under inventory and pricing pressure for the remainder of the fiscal year. We note after August, the same store sales and margin comparisons will become increasingly more difficult."
With shares of American Eagle down almost 5% to $11.49 amid the downgrade, Brean Murray's new price target implies potential downside of about 13%.
To see all the analyst action on shares of AEO, visit our Analyst Ratings page.
American Eagle Outfitters, Inc. operates as an apparel and accessories retailer in the United States and Canada.
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