UPDATE: BMO Capital Markets Downgrades American Eagle Outfitters to Market Perform, Lowers PT

In a report published Friday, BMO Capital Markets downgraded its rating on American Eagle Outfitters

from Outperform to Market Perform, and lowered its price target from $27.00 to $20.00. BMO Capital noted, “We laud CEO Hanson's ability to get results. While there is certainly more room to grow, and we expect strong 3Q results, we don't see as many near-term catalysts to drive the stock significantly higher for the time being. We believe it makes sense for investors to consider taking profits into any strength now heading into a period when comps become more challenging and EPS growth is more reliant on margin expansion.” American Eagle Outfitters closed on Thursday at $18.87.