Citi lowered its price target on American Eagle Outfitters to $18 from $24 while reiterating a Neutral rating, citing momentum at the Aerie brand that could help offset weaker sales at the namesake American Eagle brand. The update followed the company's first-quarter results. On May 29, BofA reduced its price target to $16 from $20 and maintained an Underperform rating, with analyst Lorraine Hutchinson noting that higher investments meant stronger comparable sales guidance did not boost fiscal 2026 operating profit, leading the firm to cut its fiscal 2026 and 2027 earnings per share estimates by 4% and 13%, respectively. BofA also believes the stock deserves a deeper discount relative to its historical average due to ongoing challenges at the American Eagle flagship brand.
American Eagle Outfitters IncCiti and BofA lowered price targets and EPS estimates, citing weak American Eagle brand and higher investments.
Bank of America Corp