UPDATE: Jefferies & Company Reiterates Hold Rating, Lowers PT on American Eagle Outfitters

In a report published Wednesday, Jefferies & Company reiterated its Hold rating on American Eagle Outfitters AEO, but lowered its price target from $26.00 to $22.00. Jefferies noted, “We maintain a positive outlook for specialty retail stocks into 2013 as they should benefit from 1) an improving consumer environment; 2) margin tailwinds in 1H of the year; and 3) still attractive stock valuations. Additionally, in 2013 we believe the retailers are at an inflection point in their cash generation cycles which should be beneficial to both earnings and stock performance. DECK is our #1 pick for 2013.” American Eagle Outfitters closed on Monday at $20.51.