NEW YORK (TheStreet) -- Shares of American Eagle Outfitters (AEO) are higher by 6.24% to $14.31 in mid-afternoon trading on Tuesday, after the teen apparel retailer was upgraded to "overweight" from "equal weight" at Stephens.
The firm said it raised its rating on American Eagle as it believes the company's improvement in products and inventory management will drive compensation and margin upside over the course of the coming quarters, theflyonthewall.com reports.
Stephens increased its price target on American Eagle to $16 from $13.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Separately, TheStreet Ratings team rates AMERN EAGLE OUTFITTERS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERN EAGLE OUTFITTERS INC (AEO) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: