UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on American Eagle Outfitters

In a report published Monday, J.P. Morgan & Co. reiterated its Neutral rating on American Eagle Outfitters

, and raised its price target from $21.00 to $23.00. J.P. Morgan noted, “The balance sheet remains in good shape with ~$3.70 in cash/share as of 1Q12, and AEO repurchased 1.4 million shares for $15 million in FY11. We believe that, as AEO continues to generate strong results, the company will likely end FY12 with more than $1 billion in cash. With a desired cash cushion of $400-$500 million, we believe the company will have an excess ~$500M that may be potentially returned to shareholders through quarterly dividends, special dividends and/or buybacks.” American Eagle Outfitters closed on Friday at $20.46.