AEO Ready For Holiday Season

Oppenheimer has published a research report for American Eagle Outfitters

and believes the company is well positioned for a strong holiday season. In the report, Oppenheimer writes "AEO reported September comps of 4%, above both our and consensus estimates of 1% and (0.1)%, respectively, and against 0% ly. In conjunction with the release, management raised FY3Q10 EPS guidance to $0.27-$0.28 from $0.23-$0.26, predicated on a flat to slightly positive comp. Reflecting strong September full-priced sell-throughs and positive customer reaction to planned promotions/sales events, we're raising our FY3Q10 and FY10 EPS estimates to $0.28 and $1.02 from $0.26 and $1.00. As we look to 2011 and beyond, we believe AEO is well positioned to drive sales and merchandise margins while opportunistically cutting SG&A spend. Given our near- and long-term confidence, we're raising our 12-18 month PT to $19, which assumes 17% upside." Oppenheimer maintains its Outperform rating and $19 price target. American Eagle Outfitters closed yesterday at $16.93.