Piper Jaffray Lowers Price Target for Aeropostal (ARO)

Piper Jaffray analysts maintained a Neutral rating for Aeropostale ARO. They lowered FY11E EPS to $2.77 from $2.86 and lowered its price target to $30/share based on a 10x FY12E EPS of $3.00. Aeropostale sells clothing targeted towards teenagers. Piper Jaffray analysts said, "We are maintaining our Neutral rating on ARO shares despite a disappointing July comp of +1%. For the second quarter, ARO ended with a +4% comp versus +12% the year prior. With approximately 90% of its store on sale, prices down (-20%) since the BTS season began, and other retailers stepping into ARO's territory with comparable value, we believe this decline may mark the beginning of a challenging share war in the mall." Aeropostale's price target was dropped to $30, from $34. Shares are currently trading at $25.18, down 2.7% on the day.