AEO stock catches market’s eye

Less than a week before it releases its third quarter figures, American Eagle Outfitters

stock has caught the eye of the financial community. While BMO has downgraded AEO to a ‘market performance’ rating, their peers at Wells Fargo & Co. reiterated their confidence in the stock.

BMO Capital Markets downgraded shares of American Eagle (NYSE: AEO) from an outperform rating to a market perform rating in a report issued on Friday. They currently have 20 dollars target price on the stock, down from their previous target price of 27 dollars.

“We laud CEO Hanson’s ability to get results. While there is certainly more room to grow, and we expect strong third quarter results, we don’t see as many near-term catalysts to drive the stock significantly higher for the time being. We believe it makes sense for investors to consider taking profits into any strength now heading into a period when comps become more challenging and EPS growth is more reliant on margin expansion,” the firm’s analyst commented.

Meanwhile, analysts at Wells Fargo & Co. upgraded shares of American Eagle from a ‘market perform’ rating to an ‘outperform’ rating in a research note to investors on Thursday, October 18th. Separately, analysts at Piper Jaffray downgraded shares of American Eagle from an overweight rating to a neutral rating in a research note to investors on Tuesday, October 9th. They now have a 23 dollars price target on the stock, down previously from 25 dollars. Finally, analysts at Avondale Partners initiated coverage on shares of American Eagle in a research note to investors on Wednesday, October 3rd. They set a market perform rating and a 27 dollars price target on the stock.