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.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on AEO:
- American Eagle price target raised to $21.50 from $19 at UBS
- American Eagle price target raised to $15 from $11 at Citi
- American Eagle price target raised to $14 from $9 at Barclays
- Cautious Optimism for American Eagle Outfitters Amid Sector Uncertainties
- American Eagle’s Aerie Segment Drives Sustainable Growth and Justifies Buy Rating