Oppenheimer Reiterates Outperform on American Eagle Outfitters on In-Line 4Q Results

In a report published Wednesday, Oppenheimer reiterated its Outperform rating and $25.00 price target on American Eagle Outfitters

. Oppenheimer noted, “The in-line 4Q results that AEO reported this morning capped a hallmark year for the company in terms of product execution, margin enhancement activity, and well-targeted capital allocation. On the heels of this morning's downbeat 1Q outlook, however, we believe sales and margins will exhibit some degree of mean reversion near-term, tempering sentiment until the comp picture brightens. We lowering our FY13 EPS forecast to $1.47 from $1.60. Expectations have been reset to reasonable levels, and our estimates assume very modest comp acceleration as the year progresses. We remain positive on AEO's turnaround longer-term and see store fleet re-balancing, use of excess cash, and further merchandise improvements providing longer-term value drivers.” American Eagle Outfitters closed on Tuesday at $22.55.