American Eagle Outfitters (AEO) Target, Estimates Raised at Janney Capital; OK to Chase the Shares

Janney Capital analyst Adrienne Yih reiterated a Buy rating and boosted her fair value target on American Eagle Outfitters (NYSE: AEO) to $20.00 (from $19.00) following strong 1Q15 sales and earnings results with comp up +7% (AE +7%; aerie +12%), versus the Street at +5%, driven by full price selling, and $0.15 vs St $0.11

Yih recommends chasing shares of AEO based on: 1) sustainable, full price driven comps; 2) inventory & SGA discipline; 3) strong merchandise assortment; & 4) upside EPS revisions.

"Among the “three A’s,” we believe ANF & ARO will continue to donate share in ’15 & AEO will be the beneficiary," she said. "Solidly comping QTD, AEO’s spring product is best in class & resonating with Teen segment."

FY15 EPS estimate goes to $0.98 from $0.89 (versus consensus of $0.88) and FY16 EPS estimate goes to $1.08 from $0.99 (versus consensus of $0.98).

For an analyst ratings summary and ratings history on American Eagle Outfitters click here. For more ratings news on American Eagle Outfitters click here.

Shares of American Eagle Outfitters closed at $15.74 yesterday.

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