Jefferies Upgrading Aeropostale

Jefferies & Co. is out with a research report on Aeropostale ARO and is upgrading shares to Hold from Underperform, but is keeping its price target at $12. In a note to clients, Jefferies & Co. writes, "Since the beginning of the year, ARO has played out to our thesis with significant top-line and margin erosion YTD. While additional challenges still lie ahead, we think they now are priced into the stock. Additionally, ARO's business model is intact and can perform better once the environment improves. Upgrade to Hold with $12 PT." Shares of ARO gained 15 cents yesterday to close at $12.04.