American Eagle price target lowered to $15 from $17 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on American Eagle (AEO) to $15 from $17 and keeps an Underweight rating on the shares. The company’s disappointing Q3 report “leaves us incrementally convicted in our Underweight rating,” says the analyst. Though Q4 “now appears de-risked,” the firm continues to see downside to 2025 and beyond forecasts, says the analyst, who adds that a gross margin miss in Q3 “heightens our fears of potential reversion from current highs.”