American Eagle upgraded to Outperform on strong big data at Wedbush
As previously reported, Wedbush analyst Jen Redding upgraded American Eagle to Outperform from Neutral, with a $29 price target. The analyst now has conviction in a strong third quarter showing for American Eagle. The suite of Wedbush Data Analytics Models now draws on 10 out of 13 weeks in Q3, and strong reads from the Wedbush Big Data Product as well as the recent decline in the shares warrant not only a positive data signal for Q3 but also a rating upgrade, she contends. In the current macro environment, Redding sees strength in the dollar and a robust unemployment/wage atmosphere as strong positives for U.S. retail as a whole, and sees American Eagle as exceptionally positioned within the space to capitalize. She attributes the recent pullback in share price as owing to a selloff in the market.