American Eagle price target lowered to $32 from $34 at UBS

UBS analyst Jay Sole lowered the firm’s price target on American Eagle (AEO) to $32 from $34 and keeps a Buy rating on the shares. While American Eagle’s stock price is likely to decline in the near-term due to a below-consensus Q4 sales outlook, the firm believes American Eagle is a mid-teens annual EPS grower and the stock’s 11x significantly undervalues the company, the analyst tells investors in a research note. A potential near-term dip is a buying opportunity, the firm adds, arguing that solid sales growth and margin expansion will continue in FY25, leading to upward EPS revisions and P/E expansion over the near-term.