Nomura Securities Reiterates a 'Buy' on American Eagle Outfitters (AEO); New CEO Meeting Takeaways
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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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Nomura Securities reiterates a 'Buy' on American Eagle Outfitters (NYSE: AEO) price target of $20.00.
Analyst, Paul Lejuez, said, "New AEO CEO Robert Hanson hosted meetings in person with analysts on Tuesday. We come away with greater conviction that this is a new AEO. Big picture takeaway is that Hanson will bring to AEO something it has lacked for years – operational discipline, accountability and an ROIC focus. Interesting points: Hanson believes in a balanced approach between driving comps and GM; negative comps are not a given. Plan to significantly reduce the number of markdowns in stores at end of season by cutting the number of items on replenishment by 50%. Would not rule out selling kids product in dept stores. Targets 14-17% ROIC for the business overall (by our calc, at 10-11% now). Approx 6-7% of its business is in outlet channel; it targets 12-15%."
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 $16.55 yesterday.
Analyst, Paul Lejuez, said, "New AEO CEO Robert Hanson hosted meetings in person with analysts on Tuesday. We come away with greater conviction that this is a new AEO. Big picture takeaway is that Hanson will bring to AEO something it has lacked for years – operational discipline, accountability and an ROIC focus. Interesting points: Hanson believes in a balanced approach between driving comps and GM; negative comps are not a given. Plan to significantly reduce the number of markdowns in stores at end of season by cutting the number of items on replenishment by 50%. Would not rule out selling kids product in dept stores. Targets 14-17% ROIC for the business overall (by our calc, at 10-11% now). Approx 6-7% of its business is in outlet channel; it targets 12-15%."
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 $16.55 yesterday.
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