Wedbush sizes up Outperform-rated American Eagle Outfitters (AEO +2.5%) following the retailer's senior note offering announcement.
"The new debt combining with the proposed loan plan, gives us further confidence that AEO's balance sheet remains healthy, with a strong cash position so that the retailer can survive an extended period of store closures," advises analyst Jen Redding.
"In the meantime, our proprietary data bolster our confidence in management’s stated acceleration in digital sales," she adds.
Redding sees AEO as an attractive story on the other side of the pandemic - backed by multiple growth strategies, unique product offerings and competitive positioning in the space.
