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