The higher price target comes after Jefferies hosted investors with the teen retailer's management.
"It's clear that this brand is in a position of strength, processes are as efficient as ever, and margin drivers are plenty. We expect recent momentum to continue and the brand to remain a standout, accompanied by upward earnings revisions," the firm wrote in a note.
Bullishness around the company's "aerie" brand continues to be strong, with management supporting Jefferies' view of a $1 billion business over time.
"We like that aerie is being margin accretive and are confident of recent momentum continuing, as the brand gains share from Victoria's Secret and PINK," the firm added.
Shares of American Eagle closed higher by 0.39% to $15.42 on Thursday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, attractive valuation levels and expanding profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AEO