UPDATE: Jefferies Reiterates On American Eagle Outfitters Following 1Q EPS Report

In a report published Thursday, Jefferies analyst Randal J. Konik reiterated a Buy rating on

, but lowered the price target from $19.00 to $17.00. In the report, Jefferies noted, “AEO posted 1Q EPS 2c above low expectations on weak topline results. Mgmt. guided 2Q below cons and announced formal cost savings through 150 store closures but we believe further CapEx and SG&A reductions and store fleet rationalization are still necessary. We view the Eagle brand as a LT anchor in the teen space but we need to see more aggressive changes in response to the changing marketplace today. Reiterate Buy, PT to $17.” American Eagle Outfitters closed on Wednesday at $11.33.