UPDATE: Morgan Stanley Cuts PT to $9 on Aeropostale; Structurally Challenged
Morgan Stanley reiterated its Underweight rating on Aeropostale (NYSE: ARO) and lowered its price target from $11 to $9.
Morgan Stanley noted, "Disappointing 4Q guidance suggests ARO's business remains under pressure. The market likely believes consensus's FY12 ~5% EBIT margin is a trough figure, but we think it represents the new normal. Our FY13 EPS estimate is 21% below consensus and we see ~30% stock price downside."
Aeropostale closed at $14.12 on Wednesday.
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