UPDATE: CRT Capital Group Raises Price Target On American Eagle Outfitters On Mixed Factors

In a report published Friday, CRT Capital Group analyst Lee J. Giordano reiterated a Fair Value rating on American Eagle Outfitters (NYSE: AEO), and raised the price target from $13.00 to $15.00.

In the report, CRT Capital Group noted, “We are maintaining our Fair Value rating and increasing our one-year price target to $15 from $13 on American Eagle Outfitters (AEO) after the Company increased fourth quarter EPS guidance amid better than expected holiday sales. AEO benefitted from positive December comps, fewer promotions, improving margins, and strong inventory management. Nevertheless, we still believe that the stock could remain range-bound as inconsistent sales trends cloud the longer-term turnaround potential. We believe the Company could continue to face comp pressure as it tries to maintain pricing integrity to boost margins. In addition, the competitive environment for teen retailers remains extremely challenging, characterized by aggressive promotional activity (although improving at AEO), weak store traffic, and a lack of fashion ‘must-haves' to drive excitement. We look forward to more detail on the Company's outlook during its presentation at the ICR XChange Conference at 10:30 A.M ET on Monday, January 12.”

American Eagle Outfitters closed on Thursday at $13.94.