Nomura Securities Maintains a 'Neutral' on Aeropostale (ARO); 3Q Review

Nomura Securities maintains a 'Neutral' on Aeropostale, Inc. (NYSE: ARO) price target of $16.00.

Nomura analyst said, "ARO reported 3Q EPS of $0.30, $0.02 above the high end of their guidance of $0.27-$0.28, and vs. cons of $0.27 and our est $0.28. While e-comm grew 19% in 3Q and the company is working to reduce costs and increase speed to market, Black Friday comp was similar to 3Q (down 9%), 4Q EPS guidance was beneath consensus and merch margins are expected to decline by 800bps in 4Q. We are reducing our 4QE from $0.48 to $0.35 (vs. cons $0.43). Our F11E goes from $0.94 to $0.82 (vs. cons $0.88). While ARO is not expensive, trading at 4.8x our F12E EBITDA (vs. the group at 6.1x) it is hard to get excited about the stock with sales productivity still at elevated levels."

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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