Sydney Sweeney Ad Can’t Offset Tariff Impact on American Eagle Stock: BofA

American Eagle will need more than Sydney Sweeney to keep its stock afloat.

That’s according to analysts at Bank of America, which cut its rating on the stock to “underperform” — or the equivalent of “sell” — citing the negative impact of tariffs. BofA also lowered its price target on American Eagle shares to $10, roughly 21% below where shares traded around 1 p.m. in New York on Monday.

“AE and Aerie are in tough positions to navigate tariffs; we do not think that either brand has much pricing power,” analysts wrote.

BofA said that although American Eagle has cut cost in recent years, there aren’t many other levers for the company to pull.

“We worry that the low-hanging fruit has been accomplished and marketing spend remains below peers,” BofA said.

The firm said this drag will counteract any positive impact from American Eagle’s jeans campaign featuring polarizing actress Sydney Sweeney, which vaulted the company into the meme stock hall of fame in July.

“We do not assign a high likelihood that momentum from this campaign can fully inflect the business over the long run,” BofA analysts wrote.

The bank also pointed to previous guidance from American Eagle earlier this month, where the company said it expected tariffs to lower its gross profits for the current fiscal year by around $40 million.

BofA’s specific cuts to their outlook for American Eagle earnings included an 8%-lower adjustment for 2025 EPS, and a lowering of 30% for profit next year.

American Eagle joined the market’s meme stock frenzy in July after it launched its Sydney Sweeney ad campaign, which sparked online controversy and a ringing endorsement from President Donald Trump. Shares climbed as much as 33% after the campaign launched on July 22, though the stock is still down 23% year-to-date.