American Eagle initiated with a Market Perform at Raymond James

Raymond James initiated coverage of American Eagle (AEO) with a Market Perform rating. The firm likes American Eagle’s long-term drivers across the American Eagle brand and especially for Aerie, which is in the early to moderate innings of growth, but views the risk/reward as balanced and is seeking better visibility on upside potential to expectations as sales growth slows and demand becomes choppier, the analyst tells investors in a research note. The firm sees shares being range-bound until the market gains confidence in an acceleration.