UPDATE: Stifel Downgrades American Eagle Outfitters Following CEO Replacement

In a report published Thursday, Stifel analyst Richard Jaffe downgraded American Eagle Outfitters (NYSE: AEO) to Hold from Buy, following the announcement that Jay Schottenstein, Executive Chairman of the Board, has been appointed as the company's Interim CEO, succeeding CEO Robert Hanson until a permanent CEO has been found.

According to the report, the downgrade comes as visibility for the turnaround of the business has grown less certain. It is believed that there is uncertainty surrounding both the merchandise turnaround and the CEO search.

“Executive Chairman of the Board, Jay Schottenstein, will serve as the interim CEO as the company searches for a new CEO to replace Robert Hanson. While Mr. Schottenstein has served as Chairman of the company since 1992, he has not been CEO since 2002, and we believe he has not been involved in day to day decisions of the company since that time. It will likely be an adjustment for Mr. Schottenstein to resume daily CEO responsibilities.”

AEO closed Wednesday at $14.31 with shares trading down at 2.12 percent.