Update: Piper Jaffray Raises Price Target On American Eagle (AEO)

Piper Jaffray is raising its price target on shares of American Eagle AEO to $15 from $14, and has a Neutral rating on shares.

In a note to clients, Piper Jaffray writes, "We remain Neutral on shares of AEO following the company's FQ4 results and FY12 guidance. Despite lackluster sales (4%) and comps (7%), margin gains and lower SG&A drove FQ4 EPS to $0.44 (a 36% increase). During the holiday quarter, TXNs declined in the MSD due to lower traffic levels while conversions were flat and ATV/UPTs increased slightly. Management guided FQ1 comps flat to (3%); we believe product changes, competitor consolidations and retail growth opportunities exist throughout the year and the company has the potential to exceed FQ1 guide. While we are lowering our FY12E EPS from $1.08 to $1.02 our PT increases to $15 from $14 on 15x (formerly 13x) FY12E EPS."

Shares of AEO gained 76 cents yesterday to close at $15.56, a gain of 5.1%.