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Fly News Breaks for February 3, 2020
AEO
Feb 3, 2020 | 16:38 EDT
BMO Capital analyst Simeon Siegel initiated coverage of American Eagle Outfitters with a Market Perform rating and $15 price target. The analyst believes the namesake brand "has hit its North America ceiling." However, if Aerie tilts fundamentals positive, the shares could look attractive, says Siegel.
News For AEO From the Last 2 Days
AEO
Jun 5, 2020 | 09:28 EDT
RBC Capital analyst Kate Fitzsimons raised the firm's price target on American Eagle to $14 from $8 but keeps a Sector Perform rating on the shares after its Q1 results. The company's Aerie's brand and digital momentum position American Eagle well for share gains even during the pandemic, but with the stock rising 50% since late-March, the risk-reward on the shares is "more balanced", the analyst tells investors in a research note.
AEO
Jun 4, 2020 | 10:06 EDT
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Tyson Foods (TSN) upgraded to Outperform from Market Perform at Bernstein with analyst Alexia Howard saying as livestock slaughter remains meaningfully below the year-ago level, the industry average pork and beef packer margins have reached record levels. 2. Oshkosh (OSK) upgraded to Conviction Buy from Buy at Goldman Sachs with analyst Jerry Revich saying he believes access equipment orders and backlogs are approaching trough, and that construction equipment capacity utilization has inflected off April lows and is set to improve further amid limited supply. 3. Wells Fargo (WFC) upgraded to Buy from Hold at Deutsche Bank. 4. American Eagle (AEO) upgraded to Equal Weight from Underweight at Morgan Stanley with analyst Kimberly Greenberger saying she believes renewed inventory and operating expense discipline could lead to upside for its EBIT margin and thinks the company's liquidity "appears appropriate." 5. SeaWorld (SEAS) upgraded to Buy from Neutral at Citi with analyst Jason Bazinet saying he expects "ongoing challenges in a post-COVID environment" and models 2022 attendance 5% below 2019 levels. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
AEO
Jun 4, 2020 | 07:39 EDT
Deutsche Bank analyst Tiffany Kanaga raised the firm's price target on American Eagle to $15 from $13 and keeps a Buy rating on the shares following the company's Q1 results. American Eagle has re-established itself as a "winner in the mall" with "outstanding" quarter-to-date trends thus far in Q2, Kanaga tells investors in a research note. Management is seeing 95% productivity in re-opened stores with less promotional activity than planned, adds the analyst. Kanaga expects new customer acquisition and market share gains for both brands to drive the 2021 earnings rebound to levels only 12% below 2019, "which would represent a large relative success within specialty retail."
AEO
Jun 4, 2020 | 07:16 EDT
As previously reported, Morgan Stanley analyst Kimberly Greenberger upgraded American Eagle to Equal Weight from Underweight with a price target of $11, up from $9, after the company reported Q2-to-date brick and mortar and digital volumes that exceeded expectations. She believes renewed inventory and operating expense discipline could lead to upside for its EBIT margin and thinks the company's liquidity "appears appropriate," Greenberger added.
AEO
Jun 4, 2020 | 06:31 EDT
Barclays analyst Adrienne Yih raised the firm's price target on American Eagle to $14 from $10 and keeps an Equal Weight rating on the shares following the company's Q1 results. The company's reopened stores thus far in Q2 are at 95% productivity, a "notably faster-than-expected recovery," driven by continued strength of Aerie, an improving AE brand, and digital performance that has not waned even as stores reopened, Yih tells investors in a research note.