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American Eagle Outfitters Inc. (AEO)

Lazard Capital Markets upgrades to buy from hold

Stronger sales at American Eagle Outfitters Inc. over the past several weeks led Lazard Capital Markets analyst Todd Slater to upgrade the teen apparel retailer on Nov. 30.

Slater noted the retailer's sales have risen during the first three weeks of November. American Eagle gained market share during the recession as consumers stayed away from higher-priced teen apparel stores like Abercrombie & Fitch Co., he said. Slater called American Eagle "one of the clear winners" over the Black Friday weekend.

"American Eagle Outfitters appeared to benefit from stronger traffic-driving promotions," Slater wrote in a client note.

Slater said there's a chance the company will post better-than-expected fourth-quarter results, based on a successful Black Friday and November sales.

Sonic Corp. (SONC)

Wedbush Morgan upgrades to neutral from underperform

Wedbush Morgan's Rachael Rothman upgraded Sonic Corp. on Nov. 30, calling the restaurant operator's stock price appealing.

Rothman in a report to clients noted that the fast food chain operator's stock price has fallen about 20% in the past two months. He maintained his $10 share price target.

Sonic, like many restaurant operators, has struggled as consumers eat at home more often to save money during the recession. But Rothman said Sonic, based in Oklahoma City, is likely to benefit from its focus on boosting average checks with more combo meal offerings and promoting its core menu items. The company also faces easier comparisons in its fiscal second quarter ending in February, and should gain from a franchisee incentive program to open new restaurants in underserved markets, the analyst added.

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