In a report published by J.P. Morgan, American Eagle Outfitters AEO continues to outperform, up 5% on the year (group up 3%), despite guiding 2011 for flat earnings.
J.P. Morgan said that, “We thought the tone of the call was much better than previous bullishness from this management team, although improving brand momentum and better fashion execution has yet to translate to better comp consistency. Trading at 16x, for a flat earnings year in 2011, we think the stock is ahead of itself, although continued LBO speculation and management change in the CEO seat should continue to provide support to the shares.”
American Eagle Outfitters closed yesterday at $15.41.
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