American Eagle Outfitters downgraded to "hold"

08/22/05 - Wedbush Morgan Securities

NEW YORK, August 22 (newratings.com) - Analysts at Wedbush Morgan downgrade American Eagle Outfitters Inc (AEOS) from "buy" to "hold." The 12-month target price has been reduced from $33 to $29.

In a research note published this morning, the analysts mention that the company is witnessing increased price competition in the denim category. American Eagle Outfitters’ sales productivity is peaking, Wedbush Morgan adds. The company would witness tough gross margin comps in the near term, the analysts say.