In a report published Thursday, Wunderlich Securities analyst Eric Beder reiterated a Hold rating and $3.50 price target on Aeropostale (NYSE: ARO).
In the report, Wunderlich Securities noted, “We are reiterating our Hold rating, price target and below consensus estimates for Aeropostale (ARO) with the company reporting 2QFY15 results next Thursday after the close. We believe Aeropostale, while it is making some progress, is still pricing integrity affected and will need a material turn in the teen apparel segment before it will be able to return to some level of prominence (or profitability). While the recent Sycamore Partners deal will give the company financial breathing room, the key is when (if) operating results will improve. We will wait for signs of a turn before becoming more aggressive in the name.”
Aeropostale closed on Wednesday at $3.21.
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