FBR Capital Lowers Numbers on American Eagle Outfitters (AEO) on Soft Start to Year
FBR Capital lowered estimates on American Eagle Outfitters (NYSE: AEO) after a soft start to Q1.
They said the negative mid single-digit comps for 1Q13 was disappointing, although not dissimilar from most retailers. They note most of the weakness appears to be macro and, more importantly, weather-related. The firm lowered FY13 EPS from $1.55 to $1.52.
The stock could see pressure near-term they said. "With the stock outperforming in the last two weeks (up 10%; group up 4%) and short interest at multiyear lows (3.8% of the float, down 30% since the beginning of the year), the setup into the print was not great, and while we do not see immediate catalysts in the near term, expectations have been reset."
They maintained a Market Perform rating and $20 price target on AEO. They prefer Abercrombie & Fitch (NYSE: ANF).
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 $20.27 yesterday, with a 52 week range of $14.44-$23.94.
They said the negative mid single-digit comps for 1Q13 was disappointing, although not dissimilar from most retailers. They note most of the weakness appears to be macro and, more importantly, weather-related. The firm lowered FY13 EPS from $1.55 to $1.52.
The stock could see pressure near-term they said. "With the stock outperforming in the last two weeks (up 10%; group up 4%) and short interest at multiyear lows (3.8% of the float, down 30% since the beginning of the year), the setup into the print was not great, and while we do not see immediate catalysts in the near term, expectations have been reset."
They maintained a Market Perform rating and $20 price target on AEO. They prefer Abercrombie & Fitch (NYSE: ANF).
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 $20.27 yesterday, with a 52 week range of $14.44-$23.94.