BofA analyst Christopher Nardone raised the firm’s price target on American Eagle (AEO) to $11 from $10 and keeps an Underperform rating on the shares. Q2 results beat expectations due to stronger sales and gross margins, but the firm thinks margin pressure from tariffs will likely limit earnings upside next year, the analyst tells investors in a post-earnings note. The firm is increasing its FY25 and FY26 EPS estimates to $1.12 and $1.14, respectively, to reflect the Q2 beat and improved Aerie sales, partly offset by more significant tariff pressure in FY26.
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