American Eagle Outfitters (AEO) PT Lowered to $23 at BMO Capital on Mixed Guidance as Management Cautious on FY22

BMO Capital analyst Daniel Stroller lowered the price target on American Eagle Outfitters (NYSE: AEO) to $23.00 (from $26.00) while maintaining a Market Perform rating following mixed guidance.

The analyst commented, "AEO reported an approximately in-line 4Q, with FY22 mixed vs. Street's expectations, including EBIT of $550-600mn (below Street's ~$650mn forecast). Management highlighted it is taking a cautious view on FY22, incorporating a number of macro uncertainties. Given the risks of the macro “uncontrollables”, we remain sidelined but continue to applaud management on executing on its strategic initiatives and driving a differentiated business model. Target price to $23 (~8x FY23 EPS)."

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