Jefferies analyst Corey Tarlowe downgraded American Eagle to Hold from Buy with a price target of $16, down from $18. The analyst’s macro framework and category analysis of the prior eight recessions point to a slowdown in consumer spending "with apparel likely one of the weakest categories ahead." Given this updated outlook, the firm is more cautious on apparel companies. It downgraded a handful of lifestyle and growth platform names following the year-to-date rallies, seeing potential challenges ahead.
Published first on TheFly
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