Needham Initiates Coverage of American Eagle Outfitters (AEO) With a Hold Rating

American Eagle Outfitters, Inc. (NYSE:AEO) is one of the most undervalued retail stocks to invest in now. On March 26, Needham initiated coverage of American Eagle Outfitters, Inc. (NYSE:AEO) with a Hold rating, without assigning a price target to the stock. The firm stated that the company’s Aerie brand is doing “extremely well”, with shares inexpensive relative to history. However, it further told investors in a research note that it is awaiting more evidence of share catalysts before recommending the shares, adding that Aerie’s growth will likely slow as compares get significantly more difficult in the second half of the year.

In its fiscal Q4 and full year 2025 results, American Eagle Outfitters, Inc. (NYSE:AEO) reported that total revenue for the quarter rose 10% to a record $1.8 billion, driven by total comparable sales growth of 8% with positive results across brands. It also returned  $341 million to shareholders in 2025 from $256 million in share repurchases and $85 million in dividends. The company’s fiscal 2026 operating income guidance is in the $390 million to $410 million range.

American Eagle Outfitters, Inc. (NYSE:AEO) is a global specialty retailer that offers clothing, accessories, and personal care products. Its brand portfolio includes American Eagle and Aerie brands. American Eagle operates as a jeans and apparel brand, while Aerie offers lifestyle items such as apparel, intimates, activewear, and swim collections.

READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.

Disclosure: None. Follow Insider Monkey on Google News.