Wedbush Cuts Price Target & Estimates on American Eagle Outfitters (AEO), Market Checks Indicate Poor Products
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Price: $16.17 -0.8%
Rating Summary:
12 Buy, 24 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 24 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is maintaining its Neutral rating on shares of American Eagle Outfitters (NYSE: AEO), but is lowering its price target from $15 to $12.
The firm believes that shares of AEO will experience some pressure as investors look more into the conservative Q2 guidance instead of inline Q1 results.
Recent checks indicate that the company continues to struggle with offering brand-appropriate merchandise ranging from poor prints and silhouettes in women’s tops combined with lacking denim variety and non-denim bottoms selections as well as potential fit issues.
As a result the firm is lowering its Q1 and Q2 estimates by $0.01 to $0.15 and $0.12. The firm lowered its FY11 estimate from $1.05 to $1.0 and its FY12 from $1.10 to $1.08. Wedbush anticipates a negative 3% in Q1, a positive 1% comp for Q2, and forecasts a positive 1.9% comp for FY11.
Wedbush comments, "Though the stock is likely receiving some support from continued private equity speculation, we believe the stock could experience a multiple contraction should valuation shift solely to fundamental analysis."
For more ratings news on American Eagle Outfitters click here and for the rating history of American Eagle Outfitters click here.
Shares of American Eagle Outfitters closed at $13.52 yesterday.
The firm believes that shares of AEO will experience some pressure as investors look more into the conservative Q2 guidance instead of inline Q1 results.
Recent checks indicate that the company continues to struggle with offering brand-appropriate merchandise ranging from poor prints and silhouettes in women’s tops combined with lacking denim variety and non-denim bottoms selections as well as potential fit issues.
As a result the firm is lowering its Q1 and Q2 estimates by $0.01 to $0.15 and $0.12. The firm lowered its FY11 estimate from $1.05 to $1.0 and its FY12 from $1.10 to $1.08. Wedbush anticipates a negative 3% in Q1, a positive 1% comp for Q2, and forecasts a positive 1.9% comp for FY11.
Wedbush comments, "Though the stock is likely receiving some support from continued private equity speculation, we believe the stock could experience a multiple contraction should valuation shift solely to fundamental analysis."
For more ratings news on American Eagle Outfitters click here and for the rating history of American Eagle Outfitters click here.
Shares of American Eagle Outfitters closed at $13.52 yesterday.
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