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Q1 2018 Results: Analysts Bullish on American Eagle Outfitters

Victoria Dean - Author

Jun. 5 2018, Updated 7:34 a.m. ET

Target prices upped

After its first-quarter earnings, seven analysts raised their price targets for American Eagle Outfitters (AEO) stock. On May 31, American Eagle Outfitters reported strong numbers for its fiscal first quarter, which prompted price revision changes.

Revenues of ~$823.0 million and adjusted EPS of $0.23 beat analysts’ projections of $809.8 million and $0.22, respectively. On a YoY (year-over-year) basis, its revenues and EPS grew 8.0% and 43.8%, respectively. Comps were up 9.0%, driven by strength in both its AE and Aerie brands.

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Some of the analysts who revised their target prices for AEO stock include B. Riley, Morgan Stanley, Citigroup, and Jefferies. On June 2, B. Riley increased the price target to $27.00 from $26.00. On June 1, Citigroup raised its price target for AEO stock to $22.00 from $20.00, and Morgan Stanley raised it to $17.00 from $16.00. Jefferies upped the price target to $27.00 from $24.00.

Currently, analysts’ 12-month average target price for the company is $22.67, which reflects a 0.5% upside to its stock price on June 1.

On June 1, there were 19 analysts who were covering American Eagle Outfitters stock, and 53.0% recommended a “hold.” About 42.0% recommended a “buy,” and 5.0% recommended a “sell.”

Where do peers stand?

Of the 16 analysts covering Abercrombie & Fitch (ANF), 44.0% gave it a “hold” rating, and 25.0% rated it as a “buy.” For Gap (GPS), 76.0% of the 25 analysts covering the stock recommended a “hold,” and 12.0% rated it as a “buy.” Urban Outfitters (URBN) received a “hold” rating from 55.0% of the analysts covering the stock, and another 41.0% of the 22 analysts rated it as a “buy.”

Currently, analysts’ target price for Abercrombie & Fitch stock is $22.50, reflecting a 3.4% upside to the stock price on June 1. Gap’s mean target price is $32.78, which indicates a 13.2% upside to its stock price as of June 1. Urban Outfitters’ target price is $43.33, implying a 1.2% upside to its stock price on June 1.


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