UPDATE: Citigroup Cuts PT to $25 on American Eagle Outfitters on Competitive Concerns

Citigroup reiterated its Buy rating on American Eagle Outfitters

but reduced its price target from $28 to $25. Citigroup said, "We believe AEO's product strength was demonstrated by strong E-comm sales; however, we believe AEO remains in an extremely competitive teen-apparel market with decelerating mall traffic. We believe AEO did not act on contingent promotional plans, and note that product mix was not heavily weighted to winter categories vs. other teen retailers, which is favorable for margin and inventory estimates for 4Q, in our view. We are reducing our TP to $25 based on 14x our 2014 EPS estimate and increased risk of an increasingly competitive promotional environment." American Eagle Outfitters closed at $19.95 on Wednesday.