Wunderlich Securities Remains Cautious on American Eagle Outfitters

In a report published Friday, Wunderlich Securities analyst Eric Beder reiterated a Hold rating and $11.00 price target on

. In the report, Wunderlich Securities noted, “We are reiterating our cautious stance on American Eagle with the company reporting 2QFY15 results next Wednesday. We believe American Eagle has remained somewhat ‘stuck' under the current interim management team, with higher than planned inventories and somewhat lackluster fashion looks; we believe weakness has leaked into 3Q. Further, we believe American Eagle, given its mid-tier pricing, will not gain immediate benefits from a stabilizing pricing environment. As such, even with a 4.5%+ dividend yield and a solid brand name, we see no reason to be aggressive in AEO, even with the potential ‘catalyst' of a new CEO be named in FY15.” American Eagle Outfitters closed on Thursday at $10.79.