American Eagle Outfitters Lowered to “Neutral” at Piper Jaffray Cos. (AEO)
American Eagle Outfitters (NYSE:AEO) was downgraded by equities researchers at Piper Jaffray Cos. from an “overweight” rating to a “neutral” rating in a research report issued on Wednesday, TheFlyOnTheWall.com reports. They currently have a $16.00 price objective on the stock, down from their previous price objective of $23.00. Piper Jaffray Cos.’s price target indicates a potential downside of 2.32% from the company’s current price.
The analysts wrote, “We are moving to a Neutral rating on AEO shares with the company’s FQ2 report falling short of initial expectations and the outlook for Q3 suggesting that an improvement in sales pace is not likely, despite the broader pick-up in retail traffic that we have observed into August and likely into the seasonal month of September. We remain convinced that AE has strong brand equity with its core customer, but questions are starting to surface around sustainability of demand, ability to compete, and execution in balancing fashion and basics. As such, we think time is needed to establish a more consistent pace of business and a Neutral rating is more appropriate. We are lowering our estimates and PT from $23 to $16/share.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Barclays Capital cut their price target on shares of American Eagle Outfitters from $25.00 to $23.00 in a research note to investors on Wednesday, August 7th. Separately, analysts at Susquehanna cut their price target on shares of American Eagle Outfitters from $24.00 to $20.00 in a research note to investors on Tuesday, August 6th. Finally, analysts at RBC Capital cut their price target on shares of American Eagle Outfitters from $26.00 to $21.00 in a research note to investors on Tuesday, August 6th. They now have an “outperform” rating on the stock.
Fifteen analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $19.60.
Shares of American Eagle Outfitters (NYSE:AEO) traded down 9.68% during mid-day trading on Wednesday, hitting $14.795. 9,025,299 shares of the company’s stock traded hands. American Eagle Outfitters has a 52 week low of $15.97 and a 52 week high of $23.94. The stock’s 50-day moving average is $18.38 and its 200-day moving average is $19.28. The company has a market cap of $2.851 billion and a price-to-earnings ratio of 14.84.
American Eagle Outfitters (NYSE:AEO) last posted its quarterly earnings results on Wednesday, August 21st. The company reported $0.10 EPS for the quarter, meeting the Thomson Reuters consensus estimate of $0.10. The company had revenue of $727.00 million for the quarter, compared to the consensus estimate of $719.25 million. During the same quarter in the prior year, the company posted $0.21 earnings per share. The company’s quarterly revenue was down 1.7% on a year-over-year basis. Analysts expect that American Eagle Outfitters will post $1.19 EPS for the current fiscal year.
American Eagle Outfitters, Inc (NYSE:AEO) is a specialty retailer that operates in the United Sates and Canada, and online at ae.
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