wdstock
Bank of America upgraded American Eagle Outfitters (NYSE:AEO) to a Neutral rating after having the mall stock set at Underperform. The firm expects near-term momentum for the retailer to lead to higher estimates. The firm expect to hear more about management’s cost savings program during the next earnings call on November 21 and expects refreshed medium-term targets at the ICR Conference in January or Q4 EPS call in March.
Analyst Christopher Nardone views the risk-reward profile on AEO as balanced as recent improvements in sales trends, particularly at Aerie, are offset by continued near-term pressure on SG&A. He also said valuation on American Eagle Outfitters (AEO) is now on par with peers at 5X EV/EBITDA.
Shares of American Eagle Outfitters (AEO) were up 3.27% during the premarket session on Wednesday. The 52-week trading range for AEO is $9.95 to $18.95.
