AEO - American Eagle Outfitters is cut at Cowen with macro factors working against it

Cowen turned cautious on American Eagle Outfitters ( NYSE: AEO ) based on potential factors such as markdown pressure for the retailer, higher input costs, faltering consumer demand, and a near-term slowdown in Aerie.

Analyst Jonna Kim said Aerie's competitive moat is appreciated by the firm, but thinks AEO share could be range-bound in the near-term.

Cowen lowered its rating on AEO to Market Perform from Outperform and slashed the price target to $13 from $25 to reflect the new earnings expectations.

Looking ahead, AEO is due to report earnings during the first week of September. Analysts have been reeling in expectations on the mall player, with the last 10 EPS revisions from Wall Street to the downside.

Shares of America Eagle Outfitters ( AEO ) fell 2.49% in early trading on Monday to $11.74 vs. the 52-week trading range of $10.83 to $35.62.

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