UPDATE: Morgan Stanley Reiterates Underweight Rating, Lowers PT on American Eagle Outfitters on No Clear Path to Financial Recovery

In a report published Friday, Morgan Stanley analyst Kimberly C. Greenberger reiterated an Underweight rating on

, but lowered the price target from $9.50 to $9.00. In the report, Morgan Stanley noted, “We continue to believe AEO is a structurally challenged business. AEO delivered a-5% 3Q comp, but transactions declined -LDD. Without competitive promotions, we think AEO will be unable to stem its traffic bleed; reiterate UW.” American Eagle Outfitters closed on Thursday at $13.81.