Equities research analysts at FBR Capital Markets initiated coverage on shares of Aeropostale (NYSE:ARO) in a research note issued to investors on Wednesday, TheFlyOnTheWall.com reports. The firm set a “market perform” rating and a $10.00 price target on the stock. FBR Capital Markets’ price target would indicate a potential upside of 3.63% from the company’s current price.
The analysts wrote, “We are initiating coverage of Aéropostale, Inc. (ARO) with a Market Perform rating and a 12-month price target of $10 per share. ARO has recently been victim to weak traffic and reduced teen spending, both of which have been exacerbated by execution issues that have lingered since mid 2012 (last positive comp was in 1Q12). ARO is currently in a turnaround stage, focused on repositioning its brand to higher-margin fashion items (currently 25% penetration) that it believes will increase average unit retail (AUR). While we are cautious on ARO and its effort to drive higher AUR, a recent stake taken by a subsidiary of a private equity firm has fueled takeout speculation. Much of the downside is likely already priced in, but we would remain on the sidelines until the company can show positive signs of its turnaround.”
Several other analysts have also recently commented on the stock. Analysts at BlueFin Research upgraded shares of Aeropostale (NYSE:ARO) from a “neutral” rating to an “outperform” rating in a research note to investors on Thursday, September 26th. Separately, analysts at Standpoint Research upgraded shares of Aeropostale (NYSE:ARO) from a “hold” rating to a “buy” rating in a research note to investors on Monday, September 23rd. Finally, analysts at Nomura reiterated a “hold” rating on shares of Aeropostale (NYSE:ARO) in a research note to investors on Wednesday, September 18th. They now have a $7.00 price target on the stock. Six investment analysts have rated the stock with a sell rating, eighteen have given a hold rating and seven have given a buy rating to the stock. The company currently has an average rating of “Hold” and an average target price of $11.23.
Aeropostale (NYSE:ARO) opened at 9.65 on Wednesday. Aeropostale has a 52-week low of $7.78 and a 52-week high of $17.10. The stock has a 50-day moving average of $9.60 and a 200-day moving average of $13.04. The company’s market cap is $757.4 million. Aeropostale also was the target of some unusual options trading on Monday. Stock traders bought 5,793 put options on the company. This is an increase of approximately 215% compared to the average volume of 1,839 put options.
Aeropostale (NYSE:ARO) last announced its earnings results on Thursday, August 22nd. The company reported ($0.34) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by $0.10. The company had revenue of $454.00 million for the quarter, compared to the consensus estimate of $453.97 million. Aeropostale’s revenue was down 6.4% compared to the same quarter last year. Analysts expect that Aeropostale will post $-0.69 EPS for the current fiscal year.
Aeropostale, Inc, (NYSE:ARO) is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 4 to 12 year-old kids through its P.
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