Aeropostale’s “Overweight” Rating Reaffirmed at Wedbush (ARO)

Posted by: Amir Abbas Vahidi Posted date: March 19, 2013 In: Analyst Articles - US, Investing

Wedbush reissued their overweight rating on shares of Aeropostale (NYSE: ARO) in a report released on Friday.

“Q4 OpEPS of $0.24 (excl charges) vs. $0.44 LY beat our $0.21 & consensus’ $0.22 on comps of (8)%. Sales declined (1.3) % to $797.7M with men’s (4)% and women’s (10)%. UPT rose +5%, AUR (7)%, and transactions (6)%. Gross margins declined (210) bp from (70) bp dip in merchandise margin and (140) bp of occupancy deleverage. Inventory (7)% psf. Cash is ~$3/share.,” the firm’s analyst commented.

Wedbush has also taken action a number of other services stocks recently. The firm raised its price target on shares of Zumiez from $23.00 to $24.00. They have a neutral rating on that stock. Also, Wedbush reiterated its neutral rating on shares of Urban Outfitters.

Several other analysts have also recently commented on the stock. Analysts at Goldman Sachs reiterated a neutral rating on shares of Aeropostale in a research note to investors on Friday. Separately, analysts at Janney Montgomery Scott cut their price target on shares of Aeropostale from $12.00 to $11.00 in a research note to investors on Friday. Finally, analysts at Cowen reiterated an outperform rating on shares of Aeropostale in a research note to investors on Wednesday, March 13th.

Twelve equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. The stock currently has an average rating of Hold and an average target price of $16.27.

Shares of Aeropostale (NYSE: ARO) opened at 14.19 on Friday. Aeropostale has a one year low of $11.76 and a one year high of $23.05. The stock’s 50-day moving average is currently $13.46. The company has a market cap of $1.111 billion and a P/E ratio of 33.00.

Aeropostale, Inc., (NYSE: ARO) is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 4 to 12 year-old kids through its P.

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