Nomura Securities Q1 Review of Aeropostale, Inc. (ARO); Still Prefers American Eagle (AEO)
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Price: $0.15 --0%
Rating Summary:
5 Buy, 25 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
Rating Summary:
5 Buy, 25 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
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Nomura Securities maintains a 'Neutral' on Aeropostale, Inc. (NYSE: ARO) price target of $20.00.
Analyst, Paul Lejuez, said, "ARO reported 1Q EPS of $0.13, in line with both our estimate and cons, and at the high end of the company’s updated guidance of $0.12-$0.13 (original guidance $0.08-$0.10). ARO’s significant changes to product and mktg seem to be resonating with consumers. Although 2Q guidance levels seem conservative, we believe expectations for sales and margin improvement are already fairly high. Our FY12E and FY13E EPS remain the same at $1.42/$1.71, respectively. While ARO may appear cheap (ARO trades at 4.6x our F12E EBITDA vs. AEO at 5.4x), we prefer American Eagle (NYSE: AEO) given its stronger sales momentum, FCF and new focus on ROIC."
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 $17.71 yesterday.
Analyst, Paul Lejuez, said, "ARO reported 1Q EPS of $0.13, in line with both our estimate and cons, and at the high end of the company’s updated guidance of $0.12-$0.13 (original guidance $0.08-$0.10). ARO’s significant changes to product and mktg seem to be resonating with consumers. Although 2Q guidance levels seem conservative, we believe expectations for sales and margin improvement are already fairly high. Our FY12E and FY13E EPS remain the same at $1.42/$1.71, respectively. While ARO may appear cheap (ARO trades at 4.6x our F12E EBITDA vs. AEO at 5.4x), we prefer American Eagle (NYSE: AEO) given its stronger sales momentum, FCF and new focus on ROIC."
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 $17.71 yesterday.
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