Nomura Securities Reiterates a 'Neutral' on Aeropostale (ARO); Lowers Outlook

Nomura Securities reiterates a 'Neutral' on Aeropostale, Inc. (NYSE: ARO), PT lowered from $25 to $22.

Nomura analyst, Paul Lejuez, says, "While it is no longer reporting monthly sales, on sales day yesterday ARO announced that 1Q comps were (7)% and management reduced its 1Q EPS guidance to $0.20 from $0.35-$0.38, well below consensus of $0.37 and our estimate at the time of $0.39. The significant reduction in guidance was driven by weaker-than-expected sales and margins in 1Q. We’re reducing our F11E from $2.17 to $1.58 driven by our assumptions of comps down 3% and GM down 770 bps. We are reducing our px tgt to $22 from $25, representing ~14x our new F12 EPS of $1.54 vs. the group median of 16x."

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 $21.29 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• William Blair Downgrades Enovix Corporation (ENVX) to Market Perform
• Harley-Davidson (HOG) PT Raised to $33 at DA Davidson Amid Progress on Back to Bricks Strategy
• Target (TGT) PT Raised to $170 at DA Davidson Ahead of Q2 Earnings