NEW YORK (TheStreet) -- Shares of American Eagle Outfitters (AEO) are up 1.44% to $12.69 in pre-market trading after BMO Capital Markets upgraded the Pittsburgh, PA-based specialty retailer to "outperform" from "market perform" and raised its price target to $15 from $12.
"We are upgrading our rating on shares of AEO given the pullback in the stock on conservative 4Q guidance, coupled with improvements in holiday and potential for the momentum to continue into spring, along with a positive read-across from competitors' disarray," analysts said.
"Nearly half way through the key December holiday season, our field research points to product continuing to improve, and market share gains despite an ongoing reduction in promotions. In light of the stock's pullback following AEO's 3Q release, we see meaningful upside to the shares at current levels," analysts added.
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 expanding profit margins and largely solid financial position with reasonable debt levels by most measures. 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."