Nomura Securities Reiterates a 'Buy' on American Eagle Outfitters (AEO); Adjusting Estimates After Q1 Review

Nomura Securities reiterates a 'Buy' on American Eagle Outfitters (NYSE: AEO) price target of $24.00.

Analyst, Paul Lejuez, said, "Following AEO’s sector leading +17% comp in 1Q, the company is guiding to +mid single digit comps in 2Q, well above trends at primary teen competitors. We believe AEO’s fashion is on target and the company is taking share and driving the top line while pulling back on promotions. We expect leaner inventories in 2H to drive significant GM increases and believe the company will be well positioned with down high single-digit unit buys while teen competitors seem ready to buy units up. F12E/F13E EPS from $1.28/$1.49 to $1.44/$1.66 (reflecting $0.10 from 77kids closure). Trading at 5.5x F12E EBTDA, valuation is attractive."

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 $20.04 yesterday.

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