What happened Shares of American Eagle Outfitters (NYSE: AEO) are trading 4% higher Wednesday morning, after an analyst at J.P. Morgan upgraded his outlook on the stock to "overweight" with a $17 price target, some 47% above where it closed yesterday. So what TheFly.com says analyst Matthew Boss indicates that the 45% decline in the apparel retailer's stock over the last 18 months means the market has "mis-priced" its shares and is ignoring strong growth drivers for the company. Image source: American Eagle Outfitters. Among those growth drivers is American Eagle's lingerie brand, Aerie, which another analyst has separately said could become a $3 billion business in the next five years, stealing market share away from L Brands' Victoria's Secret label. Now what Boss says the back-to-school season's disruption because of the coronavirus pandemic is more than offset by Aerie's potential. In addition, he says that American Eagle's commitment to closing stores is a tailwind for the retailer. He believes the $11.50 price range American Eagle was trading at implies a "zero value" to the brand, even though the company generates over $3 billion in revenue annually and is the top denim retailer in the key 15- to 25-year-old demographic. 10 stocks we like better than American Eagle OutfittersWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Eagle Outfitters wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source