Aeropostale Coverage Initiated by Analysts at Nomura (ARO)
Investment analysts at Nomura began coverage on shares of Aeropostale (NYSE:ARO) in a note issued to investors on Monday, TheFlyOnTheWall.com reports. The firm set a “neutral” rating and a $7.00 price target on the stock. Nomura’s price objective points to a potential downside of 15.46% from the stock’s previous close.
The analysts wrote, “Aéropostale, Inc. (ARO) has not posted a positive comp since 1Q12, and we believe the company is facing a greater issue than simply a seasonal product miss. We worry that ARO will continue to have a difficult time adapting to evolving fashion trends and believe the company’s lower-income customers will continue to push back on the fashion-focused, more expensive offerings. While we expect some margin improvement in FY14, meaningful margin recapture seems unlikely. Additionally, we do not expect positive FCF generation for at least the next several years based on current estimates. We estimate FY13/FY14 EPS of ($0.57) / ($0.35), compared with the Street at ($0.65) / $(0.06). Our target price of $7 is based on 0.2x EV/Sales off of our FY14 sales estimate of $2.2bn.”
Aeropostale (NYSE:ARO) remained flat at $8.28 during trading on Monday. 164,641 shares of the company’s stock traded hands. Aeropostale has a one year low of $7.78 and a one year high of $17.10. The stock’s 50-day moving average is $12.18 and its 200-day moving average is $13.56. The company’s market cap is $649.7 million.
Aeropostale (NYSE:ARO) last released its earnings data on Thursday, August 22nd. The company reported ($0.34) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by $0.10. The company had revenue of $454.00 million for the quarter, compared to the consensus estimate of $453.97 million. The company’s revenue for the quarter was down 6.4% on a year-over-year basis. Analysts expect that Aeropostale will post $-0.70 EPS for the current fiscal year.
A number of other firms have also recently commented on ARO. Analysts at KeyCorp cut their price target on shares of Aeropostale (NYSE:ARO) from $8.00 to $7.00 in a research note to investors on Friday. They now have an “underweight” rating on the stock. Separately, analysts at JPMorgan Chase & Co. cut their price target on shares of Aeropostale (NYSE:ARO) from $12.00 to $9.00 in a research note to investors on Friday, August 30th. They now have a “neutral” rating on the stock. Finally, analysts at Brean Capital upgraded shares of Aeropostale (NYSE:ARO) from a “sell” rating to a “hold” rating in a research note to investors on Monday, August 26th.
Five research analysts have rated the stock with a sell rating, eighteen have given a hold rating and seven have given a buy rating to the company’s stock. Aeropostale currently has an average rating of “Hold” and a consensus price target of $11.71.
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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