Barclays analyst Adrienne Yih lowered the firm’s price target on American Eagle (AEO) to $9 from $10 and keeps an Underweight rating on the shares. The firm’s Q1 promotion tracker for retailers shows sector-wide “flat” promos year-over-year. However, earnings risk in the second of the year is building as inventory dollars are growing, demand risk is rising, and price increases and margin pressure begin in June and July, the analyst tells investors in a research note.
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