Mizuho Securities Cuts Price Target on Aeropostale (ARO) following 2Q15
Mizuho Securities maintained a Neutral rating on Aeropostale, Inc. (NYSE: ARO), and cut the price target to $1.50 (from $2.50), following the company's 2Q15 earnings report. EPS of $(0.56) compared to $(0.46) LY was generally inline with Street’s $(0.55) estimate.
Analyst Betty Chen commented, "While we are adjusting our PT to $1.50 from $2.50 on multiple contraction, we are encouraged by early signs of recovery led by the much anticipated BTS collection. Initial favorable selling of the revamped stretchy denim, dresses, and tees along with more compelling marketing has led to renewed traffic. Though we are optimistic with the rejuvenation, we are somewhat wary of the increase in unit buys (we estimate +LSD-MSD in 2H) that could result in markdown liability should traffic dissipate. As such, we are maintaining our Neutral stance."
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Shares of Aeropostale, Inc. closed at $1.26 yesterday.