Apparel retailers were hit hard in the early days of the Covid-19 crisis—but many have recovered from those lows to post year-to-date gains.
believes that moves the companies made last month could further help the stocks.
Analyst Gabriella Carbone reiterated a Buy rating on
American Eagle Outfitters
(ticker: AEO) Friday, while raising her price target to $18 from $16. She kept Hold ratings on
(URBN), while raising her price targets to $39 from $33, and to $28 from $27, respectively. The moves come following “improving promotional activity” in September—that is, fewer discounts—which she notes could lead to higher margins.
Carbone believes that “each of these retailers has a unique assortment or provides a service that is resonating well with consumers,” as they have rolled out curbside pickup options.