American Eagle's stock takes flight after Wall Street's biggest bear says its time to stop selling
Shares of American Eagle Outfitters Inc. (AEO) climbed 5.1% toward a 20-month high in afternoon trading Wednesday, after BofA Securities analyst Christopher Nardone backed away from his bearish call a week before the apparel retailer reports fiscal third-quarter results. Nardone raised his rating to neutral, after being at underperform since July 2022, and lifted his stock price target to $19. He was previously the most bearish Wall Street analyst, as his prior $12.50 target was the lowest of the 12 analysts surveyed by FactSet. There is still one analyst that is bearish on the stock, with a $14 price target, while eight are neutral and three are bullish. The company is slated to report results on Nov. 21. Nardone said his upgrade is based on the expectation that there is "near-term momentum for upward estimate revisions" driven stronger than expected revenue. The current FactSet consensus is for fiscal third-quarter revenue of $1.28 billion, which is up from the $1.22 billion consensus at the end of July. The stock, which is headed for the highest close since March 2, 2022, has run up 40.3% year to date, while the S&P 500 has gained 17.4%.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
11-15-23 1347ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
3 Stocks to Buy and 3 Stocks to Sell After Earnings
-
Markets Brief: Is It Really a Surprising Quarter for Earnings?
-
After Earnings, Is Berkshire Hathaway Stock a Buy, a Sell, or Fairly Valued?
-
For Bond Investors, Delayed Rate Cuts Demand a Different Playbook
-
What’s Happening In the Markets This Week
-
How the Tokyo Stock Exchange Is Pushing for Better Shareholder Returns
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Where We See Opportunities After an Ugly Month for Stocks
-
What I Hope My 14-Year-Old Learned at Berkshire Hathaway’s 2024 Annual Meeting
-
After Earnings, Is Amazon Stock a Buy, a Sell, or Fairly Valued?
-
The 10 Best Dividend Stocks
-
3 Stocks With High Dividend Yields That Warren Buffett Likes
-
How to Invest Like Warren Buffett
-
Berkshire Hathaway Earnings: Strong Insurance Results Continue to Lift Revenue and Profitability
-
10 Questions for Berkshire Hathaway’s 2024 Annual Meeting
-
After Earnings, Is Ford Stock a Buy, a Sell, or Fairly Valued?