Wedbush Upgrades American Eagle Outfitters (AEO) to Outperform; Rebound on Trendy Fashion and Leaner Inventory
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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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Wedbush upgraded American Eagle Outfitters (NYSE: AEO) from Neutral to Outperform, price target raised from $14 to $22.
Analyst, Betty Chen, said, "We are upgrading shares of AEO following strong checks, as we believe the company is at the cusp of earnings growth, driven by sales and gross margin expansion. Specifically, we believe new CEO Hanson’s strategy to buy less inventory, combined with design improvements, should allow AEO to garner increased full-priced selling and margin recovery particularly given lower input costs in H2. Finally, we note tight expense control and closure of underperforming stores may allow for addition leverage of expenses."
Raises Q1 EPS from $0.10 to $0.11, FY12 from $1.05 to $1.12 and FY13 from $1.20 to $1.30.
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 $18.01 yesterday.
Analyst, Betty Chen, said, "We are upgrading shares of AEO following strong checks, as we believe the company is at the cusp of earnings growth, driven by sales and gross margin expansion. Specifically, we believe new CEO Hanson’s strategy to buy less inventory, combined with design improvements, should allow AEO to garner increased full-priced selling and margin recovery particularly given lower input costs in H2. Finally, we note tight expense control and closure of underperforming stores may allow for addition leverage of expenses."
Raises Q1 EPS from $0.10 to $0.11, FY12 from $1.05 to $1.12 and FY13 from $1.20 to $1.30.
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 $18.01 yesterday.
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