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Aeropostale (NYSE:ARO)‘s stock had its “underweight” rating reiterated by Morgan Stanley in a research note issued on Friday. They currently have a $2.50 price objective on the stock, down from their previous price objective of $3.00. Morgan Stanley’s price objective points to a potential downside of 36.06% from the stock’s previous close.

The analysts wrote, “We estimate ARO burned ~$41M during 2Q, driven by 1) $33M operating cash burn net of capex and D&A, 2) ~$5M in inventory net of payables,and 3) $3M in consulting fees.For 3Q, management guided to a $33-37M operating loss. Including ~$6M capex and excluding $15M D&A leads ARO to a ~$26M 3Q cash burn given the guidance midpoint.This quarter ARO will not benefit from a 3Q tax refund check as it did in 2Q and is unlikely to see another government refund until 2Q15.”

Shares of Aeropostale (NYSE:ARO) traded down 8.41% on Friday, hitting $3.581. 1,769,857 shares of the company’s stock traded hands. Aeropostale has a 52-week low of $3.10 and a 52-week high of $10.68. The stock’s 50-day moving average is $3.32 and its 200-day moving average is $4.63. The company’s market cap is $281.6 million.

Aeropostale (NYSE:ARO) last announced its earnings results on Thursday, August 21st. The company reported ($0.46) EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.59) by $0.13. The company had revenue of $396.20 million for the quarter, compared to the consensus estimate of $392.61 million. During the same quarter in the prior year, the company posted ($0.34) earnings per share. The company’s quarterly revenue was down 12.7% on a year-over-year basis. Analysts expect that Aeropostale will post $-1.70 EPS for the current fiscal year.

Several other analysts have also recently commented on the stock. Analysts at Bank of America reiterated an “underperform” rating on shares of Aeropostale in a research note on Friday. They now have a $3.50 price target on the stock, down previously from $3.60. Separately, analysts at Stifel Nicolaus reiterated a “positive” rating on shares of Aeropostale in a research note on Tuesday. Finally, analysts at Wunderlich initiated coverage on shares of Aeropostale in a research note on Tuesday, August 12th. They set a “hold” rating and a $3.50 price target on the stock. Three equities research analysts have rated the stock with a sell rating, seventeen have issued a hold rating and seven have assigned a buy rating to the stock. Aeropostale presently has a consensus rating of “Hold” and an average target price of $6.18.

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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