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Loungewear to Lift American Eagle as We Forsake Jeans

Published 2020-08-12, 12:04 p/m
© Reuters.
JPM
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AEO
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By Christiana Sciaudone

Investing.com -- The Aerie brand is one for pandemic times. The loungewear and lingerie line owned by American Eagle Outfitters (NYSE:AEO) will help pull the company forward as people continue to hunker down at home.

The stock rose 3.4% after JPMorgan (NYSE:JPM) upgraded it to a buy-equivalent from neutral. Any back-to-school shopping disruption will be more than offset by casual and athleticwear sales via the Aerie brand, according to analyst Matthew Horvers.

It's a good time to buy as the shares have fallen by more than 45% over the past 18 months, Seeking Alpha said, citing Horvers.

Shares are trading at around $11.95, up about 25% since late July.

JPMorgan set a price target of $17, compared to the average analyst price target of $13.77.

The stock has seven buy ratings, five holds and no sells.

 

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