Oppenheimer Reiterates a Hold Rating on American Eagle

By Ryan Adsit

Oppenheimer analyst Anna Andreeva reiterated a Hold rating on American Eagle (NYSE: AEO) today and set a price target of $13. The company’s shares opened today at $12.96.

Andreeva observed:

“AE brand has comped negative for the last two quarters, with profitability under pressure, as even relatively healthy brands continue to face mall constraints; aerie remains a big bright spot, with 25% comps accelerating by 14 points on a 2-year basis (contributing 3 points to total comps, vs. 2 points throughout ’16). 2Q17 guide is based on comp deceleration despite easier compare (May sounds choppy for the industry), with similar levels of promotional pressure; AEO is playing some defense ($5M in home office restructuring, could see additional closures with ~500 store leases coming due in the next three years).”

According to TipRanks.com, Andreeva is a 3-star analyst with an average return of 1.7% and a 43.9% success rate. Andreeva covers the Services sector, focusing on stocks such as Ascena Retail Group, Abercrombie Fitch, and Children’s Place.

American Eagle has an analyst consensus of Moderate Buy, with a price target consensus of $16.50.

Based on American Eagle’s latest earnings report for the quarter ending January 31, the company posted quarterly revenue of $1.1 billion and quarterly net profit of $54.62 million. In comparison, last year the company earned revenue of $749 million and had a net profit of $40.48 million.

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American Eagle Outfitters, Inc. engages in the retail of clothing, accessories, and personal care products. It operates through the American Eagle Outfitters and Aerie brands. The company was founded in 1977 and is headquartered in Pittsburgh, PA.