Robbie Stephens Keeps 'Buy' on American Eagle
Robertson Stephens reiterates buy on American Eagle Outfitters (AEOS ).
Analyst Janet Joseph Kloppenburg says October same store sales now are expected to increase 4%-5%, above the prior flat-to-+2% guidance. She says with leading comparison sales and EPS results throughout the second half of 2002, she expects price-to-earnings multiple to expand to the 16 times to 17 times range, in line with the historical average valuation. Kloppenburg remains confident in American Eagle's ability to achieve her current $1.54 fiscal 2002 (Jan.) EPS estimate, and to at least achieve (if not exceed) her current $1.80 fiscal 2003 EPS estimate as consumer spending and mall traffic return to more normalized levels.