On Dec 06, major Wall Street analysts update their ratings for $American Eagle (AEO.US)$, with price targets ranging from $21 to $32.
J.P. Morgan analyst Matthew Boss downgrades to a hold rating, and adjusts the target price from $27 to $23.
BofA Securities analyst Christopher Nardone maintains with a hold rating, and adjusts the target price from $25 to $21.
Citi analyst Paul Lejuez maintains with a hold rating, and adjusts the target price from $22 to $21.
Barclays analyst Adrienne Yih maintains with a buy rating, and adjusts the target price from $26 to $22.
UBS analyst Jay Sole maintains with a buy rating, and adjusts the target price from $34 to $32.
Furthermore, according to the comprehensive report, the opinions of $American Eagle (AEO.US)$'s main analysts recently are as follows:
The company's Q3 earnings exceeded expectations, driven by higher than anticipated spending and assistance from non-fundamental factors, though this was somewhat negated by a shortfall in gross margin.
Despite a forecast for a near-term decline in American Eagle's stock price due to a weaker than expected Q4 sales outlook, analysts believe the company is capable of a solid annual EPS growth rate in the mid-teens, which significantly undervalues the stock at 11x. This potential near-term dip is viewed as a buying opportunity, with expectations of continued solid sales growth and margin expansion in FY25, leading to upward earnings revisions and price-to-earnings expansion in the near future.
The forecast for American Eagle's FY24 EPS has been revised downward by 9 cents to $1.69, reflecting expectations for weaker sales and margins in Q4. This adjustment accounts for more erratic near-term trends.
American Eagle's same-store-sales growth of 3.0% did not meet management's expectations at the midpoint, coupled with a decrease in gross margin. These developments are pointed out following the company's third-quarter report and were central to the revised expectations for fiscal 2024.
American Eagle experienced notable shortfalls in revenue and gross margins, with these issues brought to light in a recent performance evaluation. Despite these challenges, management has expressed that there are periods of strong customer engagement that present potential upside. On the other hand, the inconsistency in the company's digital sales and the predicted fluctuations during non-peak periods suggest that the effectiveness of management's strategies will be crucial going forward.
Here are the latest investment ratings and price targets for $American Eagle (AEO.US)$ from 5 analysts:
Note:
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