Analysts lower targets on American Eagle Outfitters Inc. (AEO:NYE) on Forecasted Lower Revenue

American Eagle Outfitters Inc. stock

American Eagle Outfitters Inc Stock Forecast:

Based on the analysis of 9 analysts, the average target price for American Eagle Outfitters Inc stock is USD 15.50 for the next 12 months. The average analyst rating for the stock is “Hold.” Stock Target Advisor‘s own analysis suggests a slightly bearish outlook, with 4 positive signals and 9 negative signals. As of the last closing, the stock price of American Eagle Outfitters Inc was USD 12.07. Over the past week, the stock price has decreased by -6.80%, over the past month by -12.09%, and over the last year by -0.33%.

Analysts Coverage Change:

  • Telsey Advisory Group maintains a “Market Perform” rating for American Eagle Outfitters and  lowers the price target to $12 from $17.
  • Barclays lowers its price target for American Eagle Outfitters to $11 from $13.

American Eagle Outfitters Inc. News:

American Eagle Outfitters Inc, announced a cut to its full-year revenue forecast on Wednesday. The company cited the slowing demand for non-essential items, including apparel, as a result of persistent high inflation. The news sent shares of the company tumbling in aftermarket trading, reflecting investor concerns about the impact of inflation on consumer spending.

American Eagle now expects its annual revenue to remain flat to down low-single digits, a revision from its previous forecast of flat to up low-single digits. The company also anticipates a drop in second-quarter revenue in the low-single digits, contrary to analysts’ average estimate of a 1.6% rise. The revised forecasts underscore the challenges faced by American Eagle and other retailers as they navigate the economic landscape shaped by inflationary pressures.

Despite the downward revision in revenue forecasts, American Eagle posted a quarterly gross margin rate of 38.2%, an improvement from 36.8% compared to the same period last year. The company attributed this positive performance to cost-saving measures, including lower compensation, transportation, and delivery costs.

American Eagle’s first-quarter revenue came in at $1.08 billion, surpassing analysts’ estimates of $1.07 billion. The company’s adjusted earnings of 17 cents per share met expectations.

AEO Ratings by Stock Target Advisor

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