AEO Stock Rating Maintained at Market Perform with $12 Price Target

Telsey Advisory Group maintains its "Market Perform" rating for American Eagle Outfitters (AEO) with a price target of $12.00 USD. The decision comes from analyst Dana Telsey, emphasizing consistent evaluation from previous assessments. The stock continues to be evaluated under the same market conditions as noted in the recent analysis.

Telsey Advisory Group has maintained its "Market Perform" rating for American Eagle Outfitters (AEO) with a price target of $12.00 USD. The decision, announced by analyst Dana Telsey, underscores the consistent evaluation from previous assessments. The stock continues to be evaluated under the same market conditions as noted in the recent analysis [1].

American Eagle Outfitters has experienced a challenging year. In early August, the retailer saw a 23% stock surge following a controversial advertising campaign involving Sydney Sweeney, which was defended by President Donald Trump. However, this positive momentum was short-lived, with shares declining significantly thereafter [2].

The company's stock has been under pressure, losing 23% this year and declining 43% in the past 12 months. Analysts at Bank of America (BofA) have cited higher tariffs and lower sales of American Eagle's activewear brand Aerie as key factors contributing to the stock's decline. BofA recently downgraded AEO to "Underperform" from "Neutral," lowering its price target to $10 from $11 and slashing its fiscal 2026 EPS estimate by 30% to $0.95 [3].

American Eagle's second-quarter results, scheduled for September 3, are expected to provide further insight into the company's financial health. Despite the challenges, there are potential offsets, such as stronger-than-expected performance from the Sydney Sweeney campaign or seasonal strength in denim during the back-to-school period [4].

Telsey Advisory Group's decision to maintain its rating reflects the current market conditions and the company's ongoing struggles. Investors should closely monitor American Eagle's upcoming financial results and any further analyst revisions to stay informed about potential stock price movements.

References:
[1] https://www.marketwatch.com/story/american-eagle-outfitters-stock-rises-on-collaboration-with-travis-kelce-55425ee4
[2] https://www.thestreet.com/retail/analyst-revises-american-eagle-outfitters-stock-price-target-ahead-of-earnings
[3] https://www.marketscreener.com/news/bofa-securities-downgrades-american-eagle-outfitters-to-underperform-from-neutral-trims-price-targe-ce7c50d8d98ff225
[4] https://www.ainvest.com/news/bank-america-downgrades-american-eagle-underperform-citing-tough-operating-environment-2508/