American Eagle: Wedbush downgrades stock

(CercleFinance.com) - Wedbush has downgraded its rating on American Eagle Outfitters from 'Outperform' to 'Neutral,' cutting its target price for the share to 38 dollars from 58 dollars, reflecting a multiple of 16.
3x for its 2022 EPS estimate of 2.33 dollars, lower than the consensus of 2.80 dollars.

"We continue to appreciate the company's growth prospects over the near and long term, and reaffirm our belief that American Eagle is attractively positioned into the all-important back half-holiday," the broker acknowledged.

Nevertheless, Wedbush says it prefers to take a back seat, seeing many positive catalysts behind its 'outperform' thesis now fairly priced in, highlighting its progress since March 2020.


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