Market Overview

UPDATE: Goldman Sachs Downgrades Aeropostale to Sell on Challenging Turnaround Path

Related ARO
Markets Continue To Rally Ahead Of Yellen's Speech At Jackson Hole
Retail ETF In Play As Handfuls Of Retailers Report Earnings

In a report published Wednesday, Goldman Sachs analyst Lindsay Drucker Mann downgraded the rating on Aeropostale (NYSE: ARO) from Neutral to Sell, and slightly lowered the price target from $11.00 to $10.00.

In the report, Drucker Mann noted, “We downgrade ARO to Sell from Neutral with 25% downside to our $10, 6-month price target (vs. 17% average upside for our coverage). A shift in the competitive landscape has left the business facing challenges, and we see downside risk to shares as major turnaround initiatives are implemented. We lower our 2014 EPS to $0.48 from $0.84 to reflect protracted comp pressures, and are 25% below FY13 consensus. We see an asymmetrical path for shares in coming quarters as merchandise changes take hold and the company focuses on its turnaround; we do not believe investors are factoring in the complexity of this endeavor, and think a more cautious stance is appropriate.”

Aeropostale closed on Tuesday at $13.26.

Posted-In: Goldman SachsAnalyst Color Downgrades Analyst Ratings

 

Related Articles (ARO)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters