Wall Street Strategies Downgrades American Eagle Outfitters (AEO) to Sell; Q1: Eagle Flying into Dangerous Territory
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Price: $16.17 --0%
Rating Summary:
12 Buy, 24 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 11 | New: 17
Rating Summary:
12 Buy, 24 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 11 | New: 17
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Wall Street Strategies downgraded American Eagle Outfitters (NYSE: AEO) from Buy to Sell. PT cut from $16 to $11.
WSS analyst, Brian Sozzi, said, "The shift in our position stems from a few items that when combined, remove potential near-term catalysts for the stock and could very well make a cheap stock even cheaper. They include: (1) CEO announcement is at least a couple of months away; (2) transactions declined materially in 1Q11, and it’s our opinion that market share was lost in key classifications (denim); (3) company appears to be preparing for a major change in brand marketing and merchandise aesthetic for back to school (from boho only to boho/prep), a very risky proposition in any environment; (4) we sense that a desire to regain market share will lead to an aggressive movement on price by the company later this year against inflationary headwinds; and (5) the sales trajectory of aerie, 77kids, and online has deteriorated, and generally underperformed rivals in 1Q11."
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.
WSS analyst, Brian Sozzi, said, "The shift in our position stems from a few items that when combined, remove potential near-term catalysts for the stock and could very well make a cheap stock even cheaper. They include: (1) CEO announcement is at least a couple of months away; (2) transactions declined materially in 1Q11, and it’s our opinion that market share was lost in key classifications (denim); (3) company appears to be preparing for a major change in brand marketing and merchandise aesthetic for back to school (from boho only to boho/prep), a very risky proposition in any environment; (4) we sense that a desire to regain market share will lead to an aggressive movement on price by the company later this year against inflationary headwinds; and (5) the sales trajectory of aerie, 77kids, and online has deteriorated, and generally underperformed rivals in 1Q11."
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.
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