Janney Montgomery Scott Upgrades American Eagle Outfitters (AEO) to Buy; Expect Sustainable Positive Comps & Margin Expansion
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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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Janney Montgomery Scott upgraded American Eagle Outfitters (NYSE: AEO) from Neutral to Buy with a price target of $20.00.
JMS analyst says, "We are upgrading shares of AEO on the back of strong holiday channel checks and our belief that AEO will continue to drive sustainable positive comps, as well as expand margins. We believe AEO will be a winner in the teen space, driving top line sales with promotions that we believe were all planned. We would expect to see EPS at the high end to above the company’s guided range of $0.40 to $0.44 for 4Q11. With a strong start to the holiday season over Black Friday and an ongoing ability to drive sales with well-executed and compelling promotions, we believe AEO will deliver solidly positive comps for 4Q11 and is taking share from its competitors. Improved product is also driving traffic and conversion, and we expect this improvement, particularly in the tops arena, to build as we head into spring."
"We are raising our 4Q11, FY11, and FY12 EPS estimates to $0.45 from $0.43; $0.96 from $0.94; and $1.12 from $1.07, respectively. We are also introducing our FY13 EPS of $1.33. Our 12-month fair value goes to $20 from $16 and is based on 18x (18% EPS growth rate) our FY12 EPS estimate of $1.12."
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 $15.72 yesterday.
JMS analyst says, "We are upgrading shares of AEO on the back of strong holiday channel checks and our belief that AEO will continue to drive sustainable positive comps, as well as expand margins. We believe AEO will be a winner in the teen space, driving top line sales with promotions that we believe were all planned. We would expect to see EPS at the high end to above the company’s guided range of $0.40 to $0.44 for 4Q11. With a strong start to the holiday season over Black Friday and an ongoing ability to drive sales with well-executed and compelling promotions, we believe AEO will deliver solidly positive comps for 4Q11 and is taking share from its competitors. Improved product is also driving traffic and conversion, and we expect this improvement, particularly in the tops arena, to build as we head into spring."
"We are raising our 4Q11, FY11, and FY12 EPS estimates to $0.45 from $0.43; $0.96 from $0.94; and $1.12 from $1.07, respectively. We are also introducing our FY13 EPS of $1.33. Our 12-month fair value goes to $20 from $16 and is based on 18x (18% EPS growth rate) our FY12 EPS estimate of $1.12."
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 $15.72 yesterday.
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