American Eagle (NYSE: AEO) was upgraded by Zacks from a “neutral” rating to an “outperform” rating in a research note issued to investors on Wednesday. The firm currently has a $21.00 price target on the stock.
Zacks’ analyst wrote, “We are upgrading our long-term recommendation on American Eagle to Outperform as the company’s first-quarter 2012 earnings of $0.22 per share beat the Zacks Consensus Estimate of $0.20 and climbed 37.5% from the prior-year period. The robust quarterly performance was primarily driven by an 18% increase in top line along with improved operating margin. Including the net effect of 77Kids business, the company’s earnings per share remain in line with the Zacks Consensus Estimate. The company now expects earnings to be between $1.16 and $1.22 per share in fiscal 2012, reflecting a year-over-year growth of 19% – 26%. We remain impressed with the company’s continued momentum in denim along with improved merchandise assortments in the women’s business segment, which will likely augment its top line performance as well as enhance gross margin. Moreover, we believe the company’s cost-saving initiatives and long-term growth strategy will not only provide financial flexibility, but will also help to drive value proposition.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Nomura (NYSE: NMR) reiterated a “buy” rating on shares of American Eagle in a research note to investors on Thursday, May 24th. Separately, analysts at Piper Jaffray (NYSE: PJC) raised their price target on shares of American Eagle to $24.00 in a research note to investors on Thursday, May 24th. They now have an “overweight” rating on the stock. Finally, analysts at Brean Murray upgraded shares of American Eagle to a “buy” rating in a research note to investors on Monday, May 21st.
Shares of American Eagle traded up 0.90% during mid-day trading on Wednesday, hitting $19.13. American Eagle has a 52 week low of $10.00 and a 52 week high of $21.13. The company has a market cap of $3.749 billion and a P/E ratio of 22.84.
American Eagle last announced its earnings results on Wednesday, May 23rd. The company reported $0.20 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.20. The company’s revenue for the quarter was up 18.0% on a year-over-year basis. On average, analysts predict that American Eagle will post $0.36 earnings per share next quarter.
American Eagle Outfitters, Inc. (AEO, Inc) is a specialty retailer that operates in the United Sates and Canada, and online at ae.