Citi Reduces PT on American Eagle Outfitters to $18, Maintains Buy (AEO)

Citi reduced its price target on American Eagle Outfitters AEO from $20 to $18. At the same time, Citi left its rating on American Eagle unchanged at Buy. In a research report published today, Citi reveals it still expects American Eagle to put in a strong performance in Q1 2011, in spite of acknowledging possible risks. In the report, Citi states, "We see risk to consensus for 1Q11 but believe expense initiatives and lean inventory levels can prevent the level of margin destruction revealed by competitor ARO in its 1Q11 preannouncement last week. Our 1Q11 EPS forecast moves to $0.14 vs consensus of $0.15 and guidance for $0.13 to $0.17." In today's trading, American Eagle added 0.14% to its value and is currently trading at $14.60.