Citi ups American Eagle target, opens ‘positive catalyst watch’

Citi raised the firm’s price target on American Eagle to $26 from $23 and keeps a Neutral rating on the shares. The analyst also opened a “90-day positive catalyst watch” on the shares. The firm anticipates an in-line with consensus Q4 report when American Eagle reports on March 7. Citi believes believe management will target mid-single-digit annual sales growth and a low-double-digit EBIT margin by fiscal 2026, implying 2026 earnings per share of $2.50 versus the consensus estimate of $1.69 before accounting for any future share repurchases. As such, the analyst sees a favorable risk/reward on the shares into the Q4 report.