The Analyst Verdict: American Eagle Outfitters In The Eyes Of 9 Experts

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Providing a diverse range of perspectives from bullish to bearish, 9 analysts have published ratings on American Eagle Outfitters AEO in the last three months.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 2 5 1 0
Last 30D 0 1 0 0 0
1M Ago 0 0 1 0 0
2M Ago 1 1 4 1 0
3M Ago 0 0 0 0 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $25.56, a high estimate of $31.00, and a low estimate of $19.00. Witnessing a positive shift, the current average has risen by 13.95% from the previous average price target of $22.43.

price target chart

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of American Eagle Outfitters's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Matthew Boss JP Morgan Announces Overweight $31.00 -
Jonna Kim TD Cowen Raises Market Perform $23.00 $21.00
Alex Straton Morgan Stanley Raises Underweight $19.00 $16.00
Adrienne Yih Barclays Raises Overweight $30.00 $27.00
Dana Telsey Telsey Advisory Group Raises Market Perform $25.00 $22.00
Dana Telsey Telsey Advisory Group Maintains Market Perform $22.00 -
Christopher Nardone B of A Securities Raises Neutral $25.00 $21.00
Paul Lejuez Citigroup Raises Neutral $26.00 $23.00
Jay Sole UBS Raises Buy $29.00 $27.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to American Eagle Outfitters. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of American Eagle Outfitters compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for American Eagle Outfitters's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of American Eagle Outfitters's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on American Eagle Outfitters analyst ratings.

About American Eagle Outfitters

American Eagle Outfitters Inc is a specialty retailer. The company is engaged in the retail of apparel and accessories with company stores in the United States, Canada, Mexico, and Hong Kong. The Company leases all store premises, regional distribution facilities, some of its office space, and certain information technology and office equipment. American Eagle also has its online business. It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel, accessories, and personal care products for women and men. Geographically, it generates the vast majority of its revenue from the United States.

A Deep Dive into American Eagle Outfitters's Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, American Eagle Outfitters showcased positive performance, achieving a revenue growth rate of 12.22% as of 31 January, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 0.38%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): American Eagle Outfitters's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.36%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): American Eagle Outfitters's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.18%, the company may face hurdles in achieving optimal financial performance.

Debt Management: American Eagle Outfitters's debt-to-equity ratio is below the industry average. With a ratio of 0.68, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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