American Eagle Outfitters Inc (AEO) saw its shares drop by 10.03% as it hit a 20-day low, reflecting market caution despite positive operational updates.
The company raised its Q4 operating income outlook to a range of $167 million to $170 million, up from a previous range of $155 million to $160 million, indicating strong sales momentum, particularly in its Aerie and Offline brands. This guidance upgrade comes amid a backdrop of market weakness, as the Nasdaq-100 and S&P 500 indices are down 0.25% and 0.30%, respectively, suggesting a sector rotation affecting AEO's stock performance.
Despite the stock's decline, the raised guidance reflects investor confidence in American Eagle's ability to navigate economic challenges, particularly with a projected comparable sales increase of 8% to 9% for Q4, which could enhance its competitive position in the apparel market.
Wall Street analysts forecast AEO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AEO is 23.90 USD with a low forecast of 18.00 USD and a high forecast of 35.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
Wall Street analysts forecast AEO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AEO is 23.90 USD with a low forecast of 18.00 USD and a high forecast of 35.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
8 Hold
2 Sell
Hold
Current: 23.130
Low
18.00
Averages
23.90
High
35.00
Current: 23.130
Low
18.00
Averages
23.90
High
35.00
UBS
NULL -> Buy
maintain
$31 -> $35
2026-01-08
Reason
UBS
Price Target
$31 -> $35
AI Analysis
2026-01-08
maintain
NULL -> Buy
Reason
UBS raised the firm's price target on American Eagle to $35 from $31 and keeps a Buy rating on the shares. CY26 EPS upside for Softline stocks is expected to be driven by a stronger-than-expected U.S. consumer and an underappreciated "Health & Wellness 2.0" trend, with estimates at least 4% above consensus for 16 names, the analyst tells investors in a research note. Earnings momentum is projected to extend into CY27, with EPS forecasts averaging about 5% above consensus, the firm adds.
Barclays
Underweight
maintain
$20 -> $24
2026-01-06
Reason
Barclays
Price Target
$20 -> $24
2026-01-06
maintain
Underweight
Reason
Barclays raised the firm's price target on American Eagle to $24 from $20 and keeps an Underweight rating on the shares. The firm is "constructive" on the specialty retail sector into 2026, citing inventory discipline and macro tailwinds from lower interest rates and gas prices. However, stock selection "is critical as demand uncertainty persists," the analyst tells investors in a research note. Barclays adjusted price targets as part of its 2026 outlook.
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Goldman Sachs
Jon Keypour
Neutral
initiated
$25
2025-12-11
Reason
Goldman Sachs
Jon Keypour
Price Target
$25
2025-12-11
initiated
Neutral
Reason
Goldman Sachs analyst Jon Keypour initiated coverage of American Eagle with a Neutral rating and $25 price target. The firm rolled out coverage of the apparel retail sector with a preference for store growth and pricing power. Apparel prices have lagged inflation, providing an opportunity for a "catch-up" to offset tariff pressures for retailers with a value perception, the analyst tells investors in a research note. Goldman says that in an environment where the middle-to-high income consumer remains resilient, it prefers newer concepts with larger store growth opportunities.
Citi
Neutral -> Hold
upgrade
$18 -> $23
2025-12-03
Reason
Citi
Price Target
$18 -> $23
2025-12-03
upgrade
Neutral -> Hold
Reason
Citi raised the firm's price target on American Eagle to $23 from $18 and keeps a Neutral rating on the shares. The company reported upside to Q3 estimates on Aerie and both American Eagle's brands are accelerating in Q4, the analyst tells investors in a research note.
About AEO
American Eagle Outfitters, Inc. is a global specialty retailer. The Company offers clothing, accessories and personal care products under its American Eagle and Aerie brands. The Company operates through two segments: American Eagle and Aerie. American Eagle is an American jeans and apparel brand. Aerie is a lifestyle brand offering intimates, apparel, activewear, and swim collections. OFFLINE by Aerie offers a complete collection of activewear and accessories. The Company sells its products directly to consumers through its retail channel, which includes its stores and concession-based shops-within-shops. It operates stores in the United States, Canada, Mexico, and Hong Kong. The Company has license agreements with third parties to operate American Eagle and Aerie stores and online marketplace businesses throughout Asia, including India, Europe, Latin America, and the Middle East. The Company also operates Todd Snyder New York (Todd Snyder), a premium menswear brand.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
