Janney Montgomery Scott Downgrades Aeropostale, Inc. (ARO) to Neutral; Weakest Among the "3 As"

Janney Montgomery Scott downgraded Aeropostale, Inc. (NYSE: ARO) from Buy to Neutral with a price target of $14.00 (from $15.00), saying they potential turn at ANF and strong product acceptance at AEO may result in a shift of dollars away from ARO.

"History would suggest that it is a very rare occurrence that all “3 As” perform well at the same time; typically it is a shifting of incremental market share from one competitor to another," analyst Adrienne Tennant notes. "Over Black Friday, we noted the biggest overall improvement in conversion at both Abercrombie & Fitch and Hollister, followed by continued brand momentum at American Eagle."

The firm lowered FY12 and FY13 EPS estimates to $0.85 from $0.90 (versus the Street at $0.96) and to $1.14 from $1.26 (versus the Street at $1.21), respectively.

For an analyst ratings summary and ratings history on Aeropostale, Inc. click here. For more ratings news on Aeropostale, Inc. click here.

Shares of Aeropostale, Inc. closed at $14.45 yesterday.

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