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UPDATE: Piper Jaffray Upgrades Aeropostale to Overweight; Pricing Suggests Margin Recovery

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Piper Jaffray raised its rating on Aeropostale (NYSE: ARO) from Neutral to Overweight and increased its price target from $20 to $24 a share.

Piper Jaffray commented, "We believe the consistency in the pricing delta between AE / Hollister and Aero over the first two weeks of BTS, trending in the mid-50% range, will support market share recapture and margin recovery at a faster pace than previously modeled. We are raising our estimates, taking an above-consensus stance for FY13 at $1.32 and FY14 at $1.60. Beyond BTS, we are intrigued by the growth prospects for P.S. by Aeropostale, acknowledging a favorable youth demographic tailwind and potential business model leverage."

Aeropostale closed at $19.67 on Friday.

Latest Ratings for ARO

DateFirmActionFromTo
Aug 2014JefferiesMaintainsHold
Aug 2014WunderlichInitiates Coverage onHold
Aug 2014NomuraMaintainsNeutral

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Posted-In: Piper JaffrayAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings

 

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