American Eagle could be investor bargain: report

NEW YORK (Reuters) - Apparel retailer American Eagle Outfitters (AEO.N) prices and concentration on jeans and T-shirts, both back-to-school staples, should help give it a boost among cost-conscious teens during a challenging retail environment, Barron's reported in its August 18 edition.

Cash on hand and a debt-free balance sheet position the company to buy back more shares, and seven of the 25 analysts who cover the once-hot stock are now bullish about its prospects, making the stock an attractive bargain for investors, Barron's said. The stock has lost 60 percent of its value over the past 19 months.

"With estimated year-end cash of $856 million, or $4.10 a share, and no debt, we believe AEO offers a compelling risk-reward profile for long-term investors," Susquehanna analyst Thomas Filandro told Barron's.

American Eagle shares closed at $14.25 Friday on the New York Stock Exchange.

(Reporting by Sarah Coffey, editing by Maureen Bavdek)