Analyst Jay Sole of UBS reiterated a Buy rating on American Eagle, boosting the price target to $21.50.
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Jay Sole’s rating is based on the significant improvement in American Eagle’s Aerie business, which has shown a positive turnaround in the second quarter. While the successful marketing campaign featuring Sydney Sweeney contributed to the company’s strong performance, Sole emphasizes that the real driver is the enhanced product offerings and merchandising strategies in the Aerie segment. This improvement suggests a sustainable growth trajectory beyond just marketing efforts.
Additionally, Sole highlights the positive sales growth in both American Eagle and Aerie brands, with Aerie returning to positive comp growth. The company’s ability to mitigate tariff-related challenges further strengthens its financial outlook. These factors, combined with upward revisions in EPS estimates and a favorable valuation, support the Buy rating and the increased price target of $21.50, which represents a 58% upside from the current stock price.
In another report released on August 28, TR | OpenAI – 4o also upgraded the stock to a Buy with a $15.00 price target.