As reported earlier, SunTrust analyst Pamela Quintilliano downgraded American Eagle to Hold from Buy and lowered her price target to $21 from $22, saying the fundamentals are not catching up to the continued advance in the stock price. The analyst contends that while the company is well-positioned from the "fashion and macro standpoint", its inventories and promotional activity have been elevated, which could potentially weigh on gross margins. Quintilliano also notes increasingly difficult comps approaching in the coming quarters, stating that the good news are "largely priced in" for American Eagle stock trading at a premium across the valuation metrics.