UPDATE: Goldman Sachs Resumes Aeropostale at Neutral on Competitive Pressures
Goldman Sachs resumed coverage on Aeropostale (NYSE: ARO) with a Neutral rating and a $14 price target.
Goldman Sachs noted, "ARO was a share beneficiary in 2008 when the economy was under pressure and consumers traded down to more value-oriented price points. Since then, continued competitive pressures have eroded ARO's value proposition, putting them in a difficult spot in our view. Teen retail one of the most competitive sectors amongst our coverage – 2011 proved to be extremely promotional in teen retail and while competitive pressures have abated somewhat in 2012, we still see potential long-term challenges as key competitors struggle to recover full-priced sales."
Aeropostale closed at $13.76 on Monday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.