American Eagle Outfitters (AEO) is poised to deliver a solid fiscal Q2 on continued strength in its Aerie brand and improving trends for the American Eagle label, UBS Securities said Wednesday in a report.

UBS forecast quarterly EPS of $0.25, $0.04 above consensus, and expects full-year guidance to be reiterated, with the Q3 outlook broadly in line with Wall Street expectations.

Industry data showed American Eagle digital traffic remained robust in Q2, with website visits increasing 41% from a year earlier and unique visitors rising 45%, both accelerating from Q1, the report said.

Q2 results are expected Wednesday.

UBS maintained its buy rating on American Eagle stock and its $31 price target.

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