BMO Capital lowered the firm’s price target on American Eagle (AEO) to $11 from $15 and keeps a Market Perform rating on the shares. The company’s pre-announced Q1 revenue was in line with consensus but its gross margin was below given an inventory write-down and higher-than-planned promos, the analyst tells investors in a research note. The management also withdrew previously issued FY25 guidance given macro uncertainty, though they have noted that they have entered Q2 “in a better position”, with inventory more aligned to sales trends, BMO added.
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Read More on AEO:
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