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JPMorgan keeps an Overweight rating on American Eagle Outfitters (AEO +1.1%) in its post-earnings assessment of the retailer.

“We see the AEO story at a positive multi-year inflection point with Aerie’s double-digit top/bottom-line profile (including high-teens+ annual footage growth & double-digit comps) reaching scale at $1B revenues and AE brand store closures representing a positive SOTP catalyst (w/ ~50% of leases expiring by 2021-end including 75% of C mall locations) and profitability/SG&A multi-year efficiency opportunity (similar to peer LB).”

The firm lifts its December 2021 price target to $18 from $17, which makes it more bullish than Street in general.



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