UPDATE: Piper Jaffray Downgrades American Eagle Outfitters Following Weaker FQ2 Report
In a report published Wednesday, Piper Jaffray analyst Stephanie S. Wissink downgraded the rating on American Eagle Outfitters (NYSE: AEO) from Overweight to Neutral, and lowered the price target from $23.00 to $16.00.
In the report, Piper Jaffray noted, “We are moving to a Neutral rating on AEO shares with the company's FQ2 report falling short of initial expectations and the outlook for Q3 suggesting that an improvement in sales pace is not likely, despite the broader pick-up in retail traffic that we have observed into August and likely into the seasonal month of September. We remain convinced that AE has strong brand equity with its core customer, but questions are starting to surface around sustainability of demand, ability to compete, and execution in balancing fashion and basics. As such, we think time is needed to establish a more consistent pace of business and a Neutral rating is more appropriate. We are lowering our estimates and PT from $23 to $16/share.”
American Eagle Outfitters closed on Tuesday at $16.38.
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