• UBS maintained its "Buy" rating for NYSE:AEO, raising the price target from $19 to $21.50.
• AEO reported a revenue of $1.28 billion in Q2, surpassing forecasts and demonstrating strong financial performance.
• The stock surged by 35.5% following the earnings announcement, with a current price increase of 37.96% to $18.79.

American Eagle Outfitters (NYSE:AEO) is a well-known American clothing and accessories retailer. The company operates under the American Eagle and Aerie brands, offering a range of apparel and lifestyle products. Competing with other retail giants like Abercrombie & Fitch and Gap, AEO has carved out a niche with its trendy and affordable offerings.

On September 4, 2025, UBS maintained its "Buy" rating for AEO, with the stock priced at $13.62. UBS also raised its price target from $19 to $21.50. This decision aligns with AEO's strong financial performance in the second quarter, where the company reported revenue of $1.28 billion, surpassing the forecasted $1.24 billion.

AEO's earnings per share (EPS) also exceeded expectations, coming in at 45 cents compared to the anticipated 20 cents. This impressive performance is attributed to increased demand, reduced promotions, and effective expense management, as highlighted by CEO Jay Schottenstein. Following the earnings announcement, AEO's stock surged by 35.5%, reaching $18.46.

Currently, AEO's stock is priced at $18.79, reflecting a significant increase of 37.96% or $5.17. The stock has fluctuated between a low of $17.21 and a high of $18.85 today. Over the past year, AEO has seen a high of $22.63 and a low of $9.27, with a market capitalization of approximately $3.26 billion.

The trading volume for AEO stands at 105.17 million shares, indicating strong investor interest. Looking ahead, American Eagle anticipates comparable sales growth in the low single-digit range for the upcoming third and fourth quarters, suggesting continued positive momentum for the company.