NEW YORK (AP) -- Brean Capital upgraded Aeropostale on Monday, saying that the teen retailer's stock has hit bottom.
Shares of Aeropostale have dropped by more than 40 percent since the beginning of August, part of a specialty retail route that began as the quarterly earnings from numerous stores painted a portrait of consumers that are no longer willing to spend much money on clothing.
Last week, the company posted a second-quarter loss and issued a weak outlook due to poor sales. Rivals Abercrombie & Fitch Co. and American Eagle Outfitters Inc. also said they are having trouble getting people into stores.
Many retailers are being forced to mark down clothing just to get shoppers spending, but that can hammer a company's profit margins.
Brean Capital analysts Eric Beder and Danielle McCoy upgraded Aeropostale's stock rating to "Hold" from "Sell" on Monday, however, saying things can't get much worse.
They said in a note to clients that they don't expect the stock to fall further.
Shares of Aeropostale Inc. rose 3 cents to $8.79 in afternoon trading Monday. They are down over 30 percent since the beginning of the year. In the past 52-weeks, shares have traded between $8.59 and $17.10.
- Investment & Company Information