B.Riley FBR analyst Susan Anderson maintained a Buy rating on American Eagle (NYSE: AEO) on May 31 and set a price target of $26. The company’s shares closed on Friday at $22.56, close to its 52-week high of $23.50.
Anderson wrote:
“AEO (Buy, $26 PT) reported a 1Q adj. EPS of $0.23, ahead of the B. Riley FBR/consensus estimate of $0.22 and $0.20–$0.22 guidance. Comp sales were significantly better than expected at +9.0%, versus B. and +MSD guidance. GM leverage was +50 bps, versus B. bps/+54 bps, driven by rent leverage and an improved markdown rate, partially offset by higher shipping costs from greater online penetration. SG&A leveraged +10 bps, versus B. flat/+27 bps, driven by higher sales, offset by higher wages and incentive compensation.Total inventories at cost increased +11% at 1Q- end, vs. top line sales increase of +8%.EPS and comp guidance for 2Q18 was above B. Riley FBR/ consensus estimates.We will be listening on call at 9:00 a.m.”
According to TipRanks.com, Anderson is a 4-star analyst with an average return of 4.2% and a 53.8% success rate. Anderson covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, Ascena Retail Group, and Abercrombie Fitch.
Currently, the analyst consensus on American Eagle is Moderate Buy and the average price target is $23.50, representing a 4.2% upside.
In a report issued on May 31, Loop Capital Markets also maintained a Buy rating on the stock with a $26 price target.
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The company has a one-year high of $23.50 and a one-year low of $10.23. Currently, American Eagle has an average volume of 4.56M.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. Most recently, in April 2018, Jennifer Foyle, the Global Brand President-aerie of AEO sold 120,070 shares for a total of $2,532,276.
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American Eagle Outfitters, Inc. is a multi-brand specialty retailer. It offers an assortment of apparel and accessories for men and women under the American Eagle Outfitters brand, and intimates, apparel and personal care products for women under the Aerie brand.
