Brean Murray Upgrades Aeropostale (ARO) from Sell to Hold
ARO Hot Sheet
Rating Summary:10 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Brean Murray upgrades Aeropostale (NYSE: ARO) from Sell to Hold.
Brean analyst says, "We are upgrading ARO and increasing our EPS projections for FY09 to $2.13 (from $1.97) and FY10EPS to $2.18 (from $1.98) after the company shocked us and announced solid positive comps for December. While margins were definitely affected by Aeropostale's more aggressive discounting policy, the company was able to drive upside by capturing material market share from competitors American Eagle (NYSE: AEO) (Not Rated) and Abercrombie & Fitch (NYSE: ANF) (Not Rated). That said, we believe material upside excitement for FY10 will be limited, from our new projections. With ARO now trading at 8.7x our new FY10 EPS estimate, we see no reason to get aggressive."
Aeropostale, Inc. is a mall-based specialty retailer of casual apparel and accessories.
Brean analyst says, "We are upgrading ARO and increasing our EPS projections for FY09 to $2.13 (from $1.97) and FY10EPS to $2.18 (from $1.98) after the company shocked us and announced solid positive comps for December. While margins were definitely affected by Aeropostale's more aggressive discounting policy, the company was able to drive upside by capturing material market share from competitors American Eagle (NYSE: AEO) (Not Rated) and Abercrombie & Fitch (NYSE: ANF) (Not Rated). That said, we believe material upside excitement for FY10 will be limited, from our new projections. With ARO now trading at 8.7x our new FY10 EPS estimate, we see no reason to get aggressive."
Aeropostale, Inc. is a mall-based specialty retailer of casual apparel and accessories.
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