Market Overview

UPDATE: Nomura Initiates Coverage on American Eagle Outfitters Following Negative HSD 2Q Comps

Share:
Related AEO
Aeropostale's Impact On American Eagle
Barron's Picks And Pans: 2017 Picks, Retail Stocks, AT&T And More
The Vetr community has downgraded $AEO to 4-Stars (Vetr)

In a report published Monday, Nomura analyst Simeon Siegel initiated coverage on American Eagle Outfitters (NYSE: AEO) with a Neutral rating and $15.00 price target.

In the report, Nomura noted, “Following six quarters of remarkable comps, the promotional environment caught up with American Eagle Outfitters, Inc. (AEO), driving negative HSD 2Q comps. With very difficult 2H13 2-year comp compares ahead, we believe AEO's comps will remain in negative MSD-to-HSD territory for the next several quarters. If AEO can right its ship and push margins toward its 14-16% EBIT margin goal, we believe it could drive ~$1.58 in FY15 EPS power, based on $3.65bn in sales and 13% EBIT margins. We project FY13/FY14 EPS estimates of $0.87/$1.09 versus the Street at $0.89/$1.13. Our price target of $15 is based on 14x our FY14 estimate, in line with the softlines coverage universe average 14x multiple and AEO's historical average of 14x.”

American Eagle Outfitters closed on Friday at $14.77.

Latest Ratings for AEO

DateFirmActionFromTo
Dec 2016Stifel NicolausMaintainsBuy
Nov 2016FBR CapitalDowngradesOutperformMarket Perform
Nov 2016Wolfe ResearchDowngradesOutperformPeer Perform

View More Analyst Ratings for AEO
View the Latest Analyst Ratings

Posted-In: Nomura Simeon SiegelAnalyst Color Initiation Analyst Ratings

 

Related Articles (AEO)

View Comments and Join the Discussion!