Morgan Stanley analyst Alexandra Straton maintains $American Eagle (AEO.US)$ with a sell rating, and adjusts the target price from $17 to $15.
According to TipRanks data, the analyst has a success rate of 62.1% and a total average return of 8.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $American Eagle (AEO.US)$'s main analysts recently are as follows:
The company's lackluster performance in its Q3 report has reinforced concerns, with indications that future forecasts beyond 2025 might continue to face challenges. Despite a seemingly less risky Q4, an observed gross margin shortfall in Q3 has heightened worries about a potential decline from recent highs.
American Eagle's Q3 earnings surpassed expectations driven by stronger than anticipated spending aided by non-fundamental factors. This was somewhat mitigated by a shortfall in gross margin.
Despite a forecasted near-term decline in American Eagle's stock price influenced by a sales outlook for Q4 that doesn't meet consensus expectations, the outlook for ongoing solid sales growth and margin expansion into FY25 remains positive. This scenario is likely to lead to upward revisions in EPS estimates and P/E expansion, presenting a potential buying opportunity for long-term growth prospects, characterized by mid-teens annual EPS growth.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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