Telsey Advisory Group Raises Target Price for AEO to $18.00: AEO Stock News

Telsey Advisory Group has raised American Eagle Outfitters' (AEO) price target from $12.00 to $18.00, a 50% increase, while maintaining a "Market Perform" rating. Analyst Dana Telsey's move reflects heightened expectations for the stock's performance. The average one-year price target for AEO is $11.88, with a high estimate of $19.00 and a low of $9.00, implying a 12.81% downside from the current price.

American Eagle Outfitters (AEO) received a significant boost from Telsey Advisory Group, which raised its price target for the apparel retailer from $12.00 to $18.00, a 50% increase. This move reflects heightened expectations for the stock's performance, as the average one-year price target for AEO is $11.88, with a high estimate of $19.00 and a low of $9.00, implying a 12.81% downside from the current price [1].

Telsey Advisory Group, known for its thorough analysis, maintained its "Market Perform" rating while increasing the price target. This suggests that while the stock is expected to perform in line with the market, there is substantial upside potential. The new price target indicates a potential 7.16% downside from the current price, which is lower than the consensus target price of $13.44 [1].

The latest earnings report from American Eagle Outfitters showed a loss of $0.29 EPS for the quarter, missing consensus estimates. However, revenue slightly exceeded expectations, indicating a mixed performance. Despite this, the company's strong brand and recent marketing campaigns, particularly the successful Sydney Sweeney campaign, have driven investor confidence [2].

Analysts at UBS also recently raised their price target for AEO to $21.50, citing improvements in the Aerie business and a 14% five-year EPS compound annual growth rate. UBS attributed the positive outlook to improved products and merchandising, not just marketing efforts [2].

American Eagle Outfitters has been gaining institutional support as well. Several major investors have increased their holdings in the company, including GAMMA Investing LLC, Raymond James Financial Inc., and Federated Hermes Inc. [1].

Overall, the recent positive analyst ratings and price target increases suggest that American Eagle Outfitters is well-positioned for growth, particularly with the Aerie brand showing strong momentum. Investors should closely monitor the company's earnings reports and any further analyst upgrades to gauge the stock's potential.

References:
[1] https://www.marketbeat.com/instant-alerts/american-eagle-outfitters-aeo-market-perform-rating-reaffirmed-at-telsey-advisory-group-2025-08-27/
[2] https://www.investing.com/news/analyst-ratings/ubs-raises-american-eagle-outfitters-stock-price-target-on-aerie-growth-93CH-4223936