Wells Fargo Upgrades Aeropostale, Inc. (ARO) to Market Perform; Risk/Reward Even Given Improving Trends
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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
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Wells Fargo upgraded Aeropostale, Inc. (NYSE: ARO) from Underperform to Market Perform, price target range $20-21 from $19-21.
Analyst, Evren Kopelman, said, "ARO's business trends are beginning to improve as the fashion product that has been added to the assortment is working and the declines in the basics business are stabilizing. Comps were flat in Q1 2012 (up 2% including ecommerce) after five quarters of declines and we are forecasting comp growth starting in Q2 2012. Improving topline combined with lower product costs could begin to make the margin recovery real after the 1,130bps of decline in 2011 to 5.1% EBIT margin (2006-10 average is 14.3%). We are raising our 2012/2013 EPS estimates to $1.28/$1.53 from $1.22/1.48."
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 $19.07 yesterday.
Analyst, Evren Kopelman, said, "ARO's business trends are beginning to improve as the fashion product that has been added to the assortment is working and the declines in the basics business are stabilizing. Comps were flat in Q1 2012 (up 2% including ecommerce) after five quarters of declines and we are forecasting comp growth starting in Q2 2012. Improving topline combined with lower product costs could begin to make the margin recovery real after the 1,130bps of decline in 2011 to 5.1% EBIT margin (2006-10 average is 14.3%). We are raising our 2012/2013 EPS estimates to $1.28/$1.53 from $1.22/1.48."
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 $19.07 yesterday.
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