American Eagle downgraded to Underweight from Equal Weight at Barclays

Barclays downgraded American Eagle (AEO) to Underweight from Equal Weight with a price target of $10, down from $17. The firm expects the macro environment to weigh on teen spending. The analyst cites the weakening consumer, growing uncertainty of the tariff impact, weak mall traffic necessitating promotions to drive conversion, gross margin pressure, and the negative sales-to-inventory inflection that occurred in fiscal Q3 for the downgrade.