American Eagle price target lowered to $20 from $23 at Telsey Advisory

Telsey Advisory analyst Dana Telsey lowered the firm’s price target on American Eagle (AEO) to $20 from $23 and keeps a Market Perform rating on the shares. The company’s Q3 earnings beat consensus, which was attributable to solid expense management, which offset weaker sales and greater gross margin pressure, the analyst tells investors. The firm maintains its rating on the stock given the continued choppiness consumer demand experienced in Q3 and early-Q4 as well as the challenging macro environment.