UPDATE: Piper Jaffray Color On ARO Target Decrease

Piper Jaffray, which raised its PT on shares of Aeropostale, Inc. ARO, “We remain Neutral rated on shares of ARO after disappointing FQ1 results,” Piper Jaffray writes. “Sales increased 1% to $469M on a negative 7% comp and the company guided FQ1 EPS 44% lower to $0.20 from $0.35-$0.38. Management attributed the quarter's declines to a challenging macro-environment and competitive pricing within the teen space. “We believe that ARO's opening price points have made the retailer especially vulnerable to cost increases and we do not see the aggressive promotional mall environment easing up anytime soon. Without a point of differentiation (fashion, action sports, branded), ARO's reliance on promoting needs to be reworked into more compelling product.” Aeropostale closed Thursday at $21.29.