Nomura Securities Reiterates a 'Buy' on American Eagle Outfitters (AEO); New CEO Meeting Takeaways
Tweet
Share
E-mailGet Alerts AEO Hot Sheet
Price: $16.17 +1.06%
Rating Summary:
12 Buy, 24 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
12 Buy, 24 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
- Boeing names Ryan Shedd as new SVP and controller
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
Create E-mail Alert Related Categories
Analyst Comments, Management ChangesRelated Entities
NomuraSign 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!
