10:25 AM EDT, 09/04/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $9 to $19, based on 12.3x our FY 27 (Jan.) EPS estimate and in line with the company's five-year average forward P/E multiple of 12.5x. We raise our FY 26 EPS estimate by $0.35 to $1.10 and maintain our FY 27 EPS estimate of $1.55. AEO posted normalized FQ2 EPS of $0.45 vs. $0.39, $0.25 above consensus estimates on revenues of $1.28B vs. $1.29B and $48M above estimates. By brand in FQ2, Aerie comparable sales increased 3% Y/Y, while the company's namesake brand American Eagle declined 3%. FQ2 gross margin expanded 30 bps Y/Y due to a better promotional environment than the year prior. Management said the company saw a strong start to its fall season thanks to the success of its recent marketing campaigns (Sydney Sweeney and Travis Kelce) and raised its full-year guidance. AEO now expects flat comparable sales and operating income of $260M at the midpoint. We remain neutral on shares after a 90% rally from its 52-week low due to valuation (15x next 12-month EPS estimates).