FBR Capital Upgrades American Eagle Outfitters (AEO) to Outperform; Cheap with Lots of Cash and Several Potential Catalysts
Tweet
Share
E-mailGet Alerts AEO Hot Sheet
Price: $22.94 +1.37%
Rating Summary:
15 Buy, 17 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
15 Buy, 17 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Join SI Premium – FREE
FBR Capital upgraded American Eagle Outfitters (NYSE: AEO) to Outperform. PT $17.
FBR analyst says, "The company’s 1Q11 report was disappointing, but there were a few positives. First, the merchandise margin was up in the quarter, as was average unit retail. Secondly, the company saw an improvement in business in May. And thirdly, AEO remains a strong free cash flow generator with $3 per share in cash and a dividend yield of more than 3%. We were encouraged by the reshuffling of the merchandising team and the return of the chief marketing officer. We believe the future announcement of a new CEO will be a positive catalyst. We think the focus on key items for the back half is the right one. And, we are pleased that the company is buying units down. Our sense is that many investors have been frustrated with the stops and starts in what is essentially still a margin recovery story. However, we believe the risk/reward is favorable, and the number of potentially positive catalysts outweighs those on the negative side."
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 $13.02 yesterday.
FBR analyst says, "The company’s 1Q11 report was disappointing, but there were a few positives. First, the merchandise margin was up in the quarter, as was average unit retail. Secondly, the company saw an improvement in business in May. And thirdly, AEO remains a strong free cash flow generator with $3 per share in cash and a dividend yield of more than 3%. We were encouraged by the reshuffling of the merchandising team and the return of the chief marketing officer. We believe the future announcement of a new CEO will be a positive catalyst. We think the focus on key items for the back half is the right one. And, we are pleased that the company is buying units down. Our sense is that many investors have been frustrated with the stops and starts in what is essentially still a margin recovery story. However, we believe the risk/reward is favorable, and the number of potentially positive catalysts outweighs those on the negative side."
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 $13.02 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Keefe, Bruyette & Woods Upgrades Trustmark (TRMK) to Outperform
- UBS Upgrades UDR, Inc. (UDR) to Buy
- Spire (SR) Declares $0.755 Quarterly Dividend; 4.9% Yield
Create E-mail Alert Related Categories
UpgradesRelated Entities
DividendSign 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!
