As previously reported, Wedbush analyst Jennifer Redding downgraded American Eagle Outfitters to Neutral from Outperform, with a $25 price target, and removed the shares from her firm's Best Ideas List. The analyst remains bullish on American Eagle over the long-term with proprietary data signaling a first quarter beat owing to strength in merchandise margin, and views Aerie's strength as "especially impressive." However, Redding now has less conviction in runway for shares as the stock approaches her price target in what the analyst views as an "increasingly volatile retail environment," and until investor visibility into a U.S.-China trade settlement improves.