American Eagle Outfitters (AEO) Stock: $25 Price Target And Market Perform Rating

By Amit Chowdhry ● Mar 7, 2022
  • The shares of American Eagle Outfitters (NYSE: AEO) have received a $25 price target from Telsey. These are the details.

The shares of American Eagle Outfitters (NYSE: AEO) have received a $25 price target from Telsey. And Telsey analyst Dana Telsey is maintaining a “Market Perform” rating on the shares.

American Eagle Outfitters recently reported a Q4 EPS of $0.35, which was in line with analyst estimates. And the revenue for the quarter was $1.51 billion compared to the consensus estimate of $1.52 billion.

For the year, the company is expecting operating profit to be in the range of $550 to $600 million, compared to an adjusted operating profit of $603 million in 2021. And the 2022 guidance reflects structural improvements to our business and significant growth from pre pandemic 2019, which posted adjusted operating profit of $314 million.

Due largely to stimulus in the first half of 2021 — which contributed to an extraordinary Spring season, combined with continued freight pressures — the company is forecasting an earnings decline in the first half, followed by a recovery in the second half as we lap elevated air freight due to factory closures and inventory flow challenges last year.

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