Urban Outfitters and American Eagle Top Retail Picks For 2014, Jefferies Says

In 2013, the words "struggling" and "retailer" were used in tandem so frequently that they practically created a new cliche. But according to one analyst at Jefferies, 2014 could bring brighter times for many specialty retailers, including Urban Outfitters, American Eagle, Ann Taylor and Chico's. Where a turnaround story may be less likely, however, is the lagging Aeropostale and Abercrombie & Fitch.

In a research report released Thursday, Jefferies equity analyst Randal Konik took a bullish stance on the whole specialty retailer sector, saying that the intense pricing pressure generated by "a promotional war zone" could dissipate in 2014.