Wells Fargo Upgrades American Eagle Outfitters (AEO) to Outperform; Increased Confidence

Wells Fargo upgraded American Eagle Outfitters (NYSE: AEO) from Market Perform to Outperform with a price target of $26-$27 versus $21-$22.

"... we believe that the perspective of the new management team, who has multi-channel experience at a global brand, will enhance AEO's business and the initial evidence has given us more confidence in that," the analyst said. "A combination of improved product, marketing, inventory and real estate strategies could accelerate AEO's sales growth to high single digits (after flattish for a number of years). Combined with faster growth in high-margin businesses (outlet & ecommerce), and inventory discipline, the bottom line could grow double digits."

Wells Fargo raised FY12E/'13E EPS to $1.38/$1.60 from $1.36/$1.48


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 $22.45 yesterday.

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