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American Eagle Outfitters Price Targets Raised by Several Analysts

The sales growth that American Eagle Outfitters is enjoying compared with 2019 counts 'among the strongest top-line results' in recent years, says RBC.
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American Eagle Outfitters  (AEO) - Get American Eagle Outfitters Inc. Report rose Thursday after the apparel retailer’s stronger-than-expected business update for the quarter ended May 1 led several analysts to raise their price targets.

The stock was trading at $35.09, up 6% in premarket trading, and has more than doubled over the past six months amid enthusiasm over vaccines and economic recovery.

B. Riley has a buy rating on the stock, and lifted its price target to $40 from $32. The update showed American Eagle is cutting back on clearance and promotions, B. Riley analysts said, according to Bloomberg.

Jefferies has a buy rating and a $39 price target. Pent-up demand in the apparel sector, fiscal stimulus and a fresh fashion cycle will help American Eagle, Jefferies said.

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RBC has an outperform rating and raised its price target to $37 from $33. The mid-teens sales growth that the company is enjoying compared to 2019 counts “among the strongest top-line results we’ve seen out of AEO over the past several years,” RBC said.

BMO has a market perform rating and boosted its price target to $36 from $26. It said American Eagle benefits from “tighter industry-wide inventory,” buoyant consumer demand and fiscal stimulus.

Telsey rates American Eagle at market perform and increased its price target to $35 from $28.

A “resurgence” in core denim with new fits and demand for shorts is boosting the company, Telsey said.

American Eagle reported better-than-expected adjusted earnings for the fiscal 2020 fourth quarter ended Feb. 1, helped by strong margins and growth in its Aerie loungewear business. The company posted adjusted fourth-quarter earnings per share of 39 cents on sales of $1.3 billion.