Nomura Securities Maintains a 'Neutral' on American Eagle Outfitters (AEO); Adjusting PT and Estimates

Nomura Securities maintains a 'Neutral' on American Eagle Outfitters (NYSE: AEO), PT increased by $2 to $17.

Nomura analyst, Paul Lejuez, said, "We believe AEO’s results in F11 will largely be dependent on what is going on in the competitive landscape. With ANF taking back market share and ARO in clearance mode, we believe it will be difficult for the AE brand to raise prices/hold back on promos without losing significant share. Mgmt continues to work on aerie, but we have seen little improvement (comped down 7% in 1Q despite adding apparel), and at 14% of the store base, AEO can’t afford for aerie not to work. We are reducing our F11E from $0.94 to $0.64, based primarily on lower comps and higher costs."

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 $13.10 yesterday.

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