Nomura Securities Maintains a 'Buy' on American Eagle Outfitters (AEO); Real Standout with Teens
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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 maintains a 'Buy' on American Eagle Outfitters (NYSE: AEO) price target of $24.00.
Analyst, Paul Lejuez, said, "AEO was a standout among the teens in 2Q, with ANF/ARO/ PSUN/WTSLA all reporting weak quarters. While AEO indicated it was pleased with the start of back-to-school (BTS), Aeropostole (NYSE: ARO), PacSun (Nasdaq: PSUN) and Wet Seal (Nasdaq: WTSLA) said the opposite (they were disappointed), while ANF said it saw only slight improvement to its negative comp trend. What we found very interesting is that looking at the three key companies’ (AEO, ANF, ARO) comp performance in the US over the past several years, there tends to be only one winner at a time. We maintain our Buy rating on AEO. Our F12E and F13E EPS remain at $1.47 and $1.70, respectively. In the absence of share repo this year, we forecast AEO to end F12 with $1bn in cash, representing ~23% of its market cap. With a double-digit FCF yield and numbers going higher, we believe this stock will continue to work."
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 $22.13 yesterday.
Analyst, Paul Lejuez, said, "AEO was a standout among the teens in 2Q, with ANF/ARO/ PSUN/WTSLA all reporting weak quarters. While AEO indicated it was pleased with the start of back-to-school (BTS), Aeropostole (NYSE: ARO), PacSun (Nasdaq: PSUN) and Wet Seal (Nasdaq: WTSLA) said the opposite (they were disappointed), while ANF said it saw only slight improvement to its negative comp trend. What we found very interesting is that looking at the three key companies’ (AEO, ANF, ARO) comp performance in the US over the past several years, there tends to be only one winner at a time. We maintain our Buy rating on AEO. Our F12E and F13E EPS remain at $1.47 and $1.70, respectively. In the absence of share repo this year, we forecast AEO to end F12 with $1bn in cash, representing ~23% of its market cap. With a double-digit FCF yield and numbers going higher, we believe this stock will continue to work."
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 $22.13 yesterday.
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