UBS Maintains a 'Neutral' on Aeropostale (ARO); Multiple Macro Pressures, but Looking for Signs of Silver Lining Given Lowered Bar
Tweet
Share
E-mailGet Alerts ARO Hot Sheet
Price: $0.15 --0%
Rating Summary:
5 Buy, 25 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 25 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
UBS maintains a 'Neutral' on Aeropostale, Inc. (NYSE: ARO), PT lowered from $26 to $25.
UBS analyst says, "Less compelling women’s product, con’t aggressive promotional activity (ie Hollister) and mounting sourcing costs will continue to weigh on sales and margins at ARO. While we expect stock weakness near-term, significant cuts to gross margin/EPS outlook, the opportunity for improved fashion in 2H, IT benefits and stepped up share repos could begin to make risk/reward appear more favorable."
"We are lowering our 2011 estimate to $2.36 from $2.56 based on a lower comp and significant gross margin deterioration, partially offset by slight SG&A leverage and lower share count."
For more ratings news on Aeropostale, Inc. click here and for the rating history of Aeropostale, Inc. click here.
Shares of Aeropostale, Inc. closed at $24.63 yesterday.
UBS analyst says, "Less compelling women’s product, con’t aggressive promotional activity (ie Hollister) and mounting sourcing costs will continue to weigh on sales and margins at ARO. While we expect stock weakness near-term, significant cuts to gross margin/EPS outlook, the opportunity for improved fashion in 2H, IT benefits and stepped up share repos could begin to make risk/reward appear more favorable."
"We are lowering our 2011 estimate to $2.36 from $2.56 based on a lower comp and significant gross margin deterioration, partially offset by slight SG&A leverage and lower share count."
For more ratings news on Aeropostale, Inc. click here and for the rating history of Aeropostale, Inc. click here.
Shares of Aeropostale, Inc. closed at $24.63 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fiserv (FISV) PT Lowered to $60 at Freedom Broker
- UBS Reiterates Buy Rating on Hilton Worldwide (HLT)
- JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
UBSSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
