UPDATE: Morgan Stanley Cuts PT to $9 on Aeropostale; Structurally Challenged

Morgan Stanley reiterated its Underweight rating on Aeropostale ARO and lowered its price target from $11 to $9. Morgan Stanley noted, "Disappointing 4Q guidance suggests ARO's business remains under pressure. The market likely believes consensus's FY12 ~5% EBIT margin is a trough figure, but we think it represents the new normal. Our FY13 EPS estimate is 21% below consensus and we see ~30% stock price downside." Aeropostale closed at $14.12 on Wednesday.