American Eagle has private investors salivating at the mouth after share prices have dropped over the past year.
Now analysts are saying a buyout could be in their future, which isn’t necessarily a bad thing.
Brian Sozzi of Wall Street Strategies Inc. explains:
“Now would be the time to strike on this…With some fresh eyes in there, I think it would make sense…They continue to be viewed as the laggard in the industry. You can├óΓé¼Γäót drive consistent sales and earnings by just selling pairs of denim.”
After closing 50-100 stores, we believe it!
American Eagle wouldn’t comment on the rumor, so until then all we can do is speculate.
[Image via AP Images.]
Mar 15, 2011 14:00pm PDT
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