American Eagle price target lowered to $13 from $21 at Citi

Citi lowered the firm’s price target on American Eagle (AEO) to $13 from $21 and keeps a Neutral rating on the shares. The firm expects the company to report in-line Q4 results with the focus on the Q1 outlook, which it thinks will be “weak” on negative American Eagle comps and higher promotions. The namesake brand is in a tough spot, with its biggest competitor, Hollister, currently comping 20%-plus, suggesting American Eagle is losing share, the analyst tells investors in a research note. Citi believes the weakness in core AE brand will matter more for the shares.