Brean Murray Carret & Co. Upgrades American Eagle Outfitters (AEO) to Buy; CEO Drops 77kids Anchor

Brean Murray Carret & Co. upgraded American Eagle Outfitters (NYSE: AEO) from Hold to Buy with a price target of $23.00.

Analyst, Eric Beder, said, "We are raising our rating and raising our FY13 EPS projection to $1.25 (from $1.10) and YF14 EPS to $1.42 (from $1.29) after AEO, in front of the Q1 earnings release on Wednesday before the open, announced the closure of the money draning 77kids operation and the departure of their CFO. We had been impressed with the new CEO Robert Hanson's plan for the company to maximize returns; we are now impressed enough with his implied returns to aggressively raise estimates, our rating and institute a price target with implied returns of 25%."

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 $18.40 yesterday.

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