Sterne Agee Neutral on American Eagle Outfitters

Sterne Agee is out with a research report on American Eagle Outfitters AEO and it has a Neutral rating and a $15 price target on shares. In a note to clients, Sterne Agee writes, "AEO reported positive comps in each month of Q3 with September the strongest month with good response to its Labor Day promotion. August and October sales trends were comparable. Both men's and women's lines reported positive comp with good trends in apparel across the board. New accessory lines were small to the total and not a key driver to comps. Traffic, conversion and transaction value improved with AUR down mid singles in part driven by accessories which carry a lower ticket. All geographies were similar in performance. The plan to increase inventory levels in the second half to support higher comps via promotional activity has been successful thus far. While cost pressures will persist in Q4, there should be less pressure by late spring." Shares of AEO are up 95 cents to $14.11, a gain of 7.22%‎.