Nomura Securities Maintains a 'Neutral' on Aeropostale, Inc. (ARO); Q2 Review: No Near-Term Catalysts
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Price: $16.32 +0.80%
Rating Summary:
10 Buy, 20 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 33 | New: 12
Rating Summary:
10 Buy, 20 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 33 | New: 12
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Nomura Securities maintains a 'Neutral' on Aeropostale, Inc. (NYSE: ARO) price target of $15.00.
Analyst, Paul Lejuez, said, "2Q results were disappointing (which we knew), and 3Q guidance was weak. But with the stock likely down today, the risk/reward is balanced to slightly favorable. ARO reported 2Q EPS of $0.00, vs. original guidance of $0.03-$0.05. 3Q EPS guidance of $0.25-$0.30 (vs. cons of $0.38 and our previous est of $0.27). Though a higher mix of fashion items (seem to be resonating with the customer) has helped, ARO still suffers from a big basics business that is facing intense margin pressure. We maintain our F12E of $0.98 and F13E of $1.14. With ARO trading at 11x F13E, the stock does not look expensive. With no near-term catalysts, we remain Neutral."
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 $13.66 yesterday, with a 52 week range of $9.16-$23.05.
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Analyst, Paul Lejuez, said, "2Q results were disappointing (which we knew), and 3Q guidance was weak. But with the stock likely down today, the risk/reward is balanced to slightly favorable. ARO reported 2Q EPS of $0.00, vs. original guidance of $0.03-$0.05. 3Q EPS guidance of $0.25-$0.30 (vs. cons of $0.38 and our previous est of $0.27). Though a higher mix of fashion items (seem to be resonating with the customer) has helped, ARO still suffers from a big basics business that is facing intense margin pressure. We maintain our F12E of $0.98 and F13E of $1.14. With ARO trading at 11x F13E, the stock does not look expensive. With no near-term catalysts, we remain Neutral."
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 $13.66 yesterday, with a 52 week range of $9.16-$23.05.
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