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UPDATE: Piper Jaffray Downgrades Aeropostale to Neutral, Lowers PT

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Should You Get Rid of Aeropostale (ARO) Now? - Tale of the Tape (Zacks)

In a report published Friday, Piper Jaffray & Co. downgraded its rating on Aeropostale (NYSE: ARO) from Overweight to Neutral, and lowered its price target from $15.00 to $13.00.

Piper Jaffray noted, “Amid further deceleration in underlying business trends, we are heavily conflicted in our view. Near-term revenue stability is lacking and execution risk remains. We think shares will continue to trade at depressed levels until investors can rule out concern that persistent topline inconsistencies are not a brand equity issue. We may be downgrading shares at their low point, but we have limited conviction that shares will outperform until the company is able to deliver consistent quarter to quarter sales and margin improvement. Holiday sales declined 9%, well below expectations and the industry average rate lending to further estimate reductions. Our price target moves from $15 to $13 based on 13x our FY14E EPS.”

Aeropostale closed on Thursday at $13.24.

Latest Ratings for ARO

DateFirmActionFromTo
May 2015Stephens & Co.MaintainsEqual-weight
May 2015FBR CapitalMaintainsMarket Perform
Apr 2015Guggenheim SecuritiesInitiates Coverage onNeutral

View More Analyst Ratings for ARO
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Posted-In: Piper Jaffray & Co.Analyst Color Downgrades Analyst Ratings

 

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