UPDATE: Stifel Nicolaus Lowers PT on American Eagle Outfitters Following Lowered 2Q EPS Guidance
In a report published Tuesday, Stifel Nicolaus analyst Richard Jaffe reiterated a Buy rating on American Eagle Outfitters (NYSE: AEO), but lowered the price target from $26.00 to $22.00.
In the report, Stifel Nicolaus noted, “[Last] evening American Eagle Outfitters lowered its 2Q EPS guidance to $0.10 versus its previous guidance of $0.19-$0.21, due to weaker than expected sales and margin results. Poor results were driven by weak traffic and lackluster response to AEO's women's summer assortment. A highly promotional mall environment, which intensified throughout July, further exacerbated the problems. We are lowering our EPS estimates and target price but reiterate our Buy rating as we believe the company's back to school assortment is on trend and improved vs. the company's ill-received summer floorset.”
American Eagle Outfitters closed on Monday at $19.97.
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