UPDATE: Piper Jaffray Raises PT on American Eagle from $24 to $25

Piper Jaffray reiterated an Overweight rating on American Eagle

and raised its price target from $24 to $25. Piper Jaffray wrote, “We are reiterating our OW rating and raising our estimates on AEO following a strong Q2 sales report in which the company posted a 9% comp-store sales gain--well ahead of our 5% estimate. In tandem with the company's report, management raised earnings guidance from $0.13-$0.15 to $0.19 to $0.21 and we are upwardly revising our estimates. The current top-line momentum, the bottoms-driven fashion cycle, operating margin recovery prospects, improvements in inventory management as well as the new additions to leadership support our constructive Overweight thesis.” American Eagle closed at $20.33 on Wednesday.