American Eagle Outfitters: Telsey Advisory Group raises PT to $18 from $12.

American Eagle Outfitters: Telsey Advisory Group raises PT to $18 from $12.

American Eagle Outfitters (AEO) has seen a significant upgrade in its price target by Telsey Advisory Group. The analyst firm, known for its market insights, has revised its price target for AEO from $12 to $18, reflecting a substantial increase of 58.33% [1].

This revision comes ahead of AEO's third quarter (Q3) earnings announcement scheduled for September 3, 2025. The upgrade suggests that analysts at Telsey Advisory Group are optimistic about the company's financial performance and future prospects. The firm's confidence is likely bolstered by recent positive developments, such as the successful "Good Jeans" campaign featuring Sydney Sweeney, which drove significant sales growth in the second quarter (Q2) [2].

AEO's stock has shown resilience, with a 17.3% return over the last 30 days compared to the Zacks S&P 500 composite's 1.5% change [2]. The company's shares are currently ranked #3 (Hold) by Zacks Investment Research [2], indicating a cautious but optimistic outlook.

The upgrade in the price target is not an isolated event. Other analysts have also revised their estimates, reflecting a general consensus of improving performance. For instance, JP Morgan analyst Matthew Boss downgraded the stock to Underweight with a price target of $9 [1], while Morgan Stanley analyst Adrienne Yih maintained an Equal-Weight rating with a price target of $10 [1].

Investors should closely monitor AEO's Q3 earnings announcement, particularly focusing on the company's operating income and guidance for the upcoming quarters. The earnings release will provide valuable insights into the company's financial health and future prospects. Historical backtesting of AEO's performance following earnings misses since 2022 suggests a tendency for short-term declines, with a 50% win rate across 3-day, 10-day, and 30-day periods and a maximum observed return of 1.52% over three days [1].

References
[1] Benzinga. (September 2, 2025). American Eagle Likely to Report Lower Q2 Earnings; These Are the Most Accurate Analysts. Retrieved from https://www.benzinga.com/analyst-stock-ratings/price-target/25/09/47481326/american-eagle-likely-to-report-lower-q2-earnings-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call
[2] Nasdaq. (2025). Curious About American Eagle (AEO) Q2 Performance? Explore Wall Street Estimates and Key Metrics. Retrieved from https://www.nasdaq.com/articles/curious-about-american-eagle-aeo-q2-performance-explore-wall-street-estimates-key-metrics