Wunderlich Securities Remains on the Sidelines About Aeropostale

In a report published Tuesday, Wunderlich Securities analyst Eric Beder reiterated a Hold rating and $3.50 price target on

. In the report, Wunderlich Securities noted, “We are reiterating our Hold rating on Aeropostale (ARO) and reducing our loss for 2QFY15 and FY15 after the company announced the return of Julian Geiger as CEO and better than expected results for 2Q. While we expect ARO to rise today on the return of Mr. Geiger, who effectively and impressively led Aero in its heyday from 1996 to 2010, we believe the near term problems in the name remain deeper than a CEO change, and, despite our reduced losses, we believe the company remains somewhat of a ‘show me' stock until some path to profitability can be ascertained. As such, we remain on the sidelines.” Aeropostale closed on Monday at $3.24.