Wunderlich Securities Sees Continued Challenges Ahead for Aeropostale, Inc.

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 and price target on shares of Aeropostale (ARO) and rolling out slightly more aggressive FY16 projections and a FY17E loss per share of $0.43 with the company announcing results after the close on Thursday. We believe Aero has continued to make progress into the Spring season in terms of inventory and looks; that said, we believe the name still remains under tremendous operating and pricing integrity pressure, which we do not see abating in the nearer term. With the next major catalyst for the company being the back-to-school season (when new management will be fully in charge of the cadence and looks), we view ARO as range bound; we will wait for some path to EPS before becoming more aggressive in the name." Aeropostale, Inc. closed on Monday at $4.09.