Needham & Company Reiterates a 'Buy' on Aeropostale (ARO); Product Improvements by Summer 2012

Needham & Company reiterates a 'Buy' on Aeropostale, Inc. (NYSE: ARO) price target of $20.00.

Needham analyst says, "At ~12x our FY12 EPS estimate of $1.32 (~11x x-$1.35 a share in cash), 0.6x P/Sales, and 3.9 EV/EBITDA, ARO is trading at slightly below the sector averages of 13x, 0.8x, and 6.9x, respectively, which we believe already discounts a worst-case scenario and lowered expectations. Thus, we believe ARO is an attractive opportunity for value oriented investors as applying a 15x multiple (the high end of its 11% to 15% growth rate) on what we think is worst case scenario for FY12 results suggests fair value of $20."

"We are increasing our F4Q, and FY11 EPS estimates to $0.37 and $0.85, respectively, up from $0.34 and $0.80. We are adjusting our F1Q, F2Q, F3Q and F4Q EPS estimates to $0.19, $0.06, $0.45, and $0.62, respectively, from $0.23, $0.08, $0.44 and $0.57."

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 $15.51 yesterday.

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