American Eagle Outfitters: UBS Maintains Buy Rating, Raises PT to $21.5.

American Eagle Outfitters: UBS Maintains Buy Rating, Raises PT to $21.5.

American Eagle Outfitters (NYSE: AEO) has seen its stock price target raised by UBS to $21.50, up from $19.00, while maintaining a Buy rating on the stock. This represents a potential 58% upside from the current stock price, according to UBS’s analysis [1].

The positive outlook is attributed to an inflection in AEO’s Aerie business, suggesting the company’s momentum extends beyond its successful Sydney Sweeney marketing campaign. UBS emphasizes that improved products and merchandising are driving quarter-over-quarter improvements at American Eagle Outfitters, not just marketing efforts.

UBS forecasts a 14% five-year earnings per share compound annual growth rate for American Eagle Outfitters and expects upward EPS revisions and price-to-earnings ratio expansion as market sentiment becomes less bearish.

In other recent news, American Eagle Outfitters Inc. reported impressive earnings for the second quarter of 2025, surpassing analysts’ expectations. The company announced earnings per share of $0.45, which was well above the projected $0.20. Additionally, American Eagle Outfitters achieved a revenue of $1.28 billion, exceeding the anticipated $1.23 billion. These results highlight the company’s strong performance in the recent quarter. The positive earnings report reflects favorable investor sentiment. Furthermore, the stock’s performance in after-hours trading showed a slight increase.

This development comes amidst a backdrop of various market activities and analyst evaluations.

References:
[1] https://www.investing.com/news/analyst-ratings/ubs-raises-american-eagle-outfitters-stock-price-target-on-aerie-growth-93CH-4223936