Price change: Aeropostale, is popping more than $.74 to $12.85 (7%) on a Jeffries’ analyst upgrade.
Thesis: ARO is trading at levels it has not seen since August 17, 2011 and looks like a breakout if it closes above $13.
Bottom line: With a strong Retail Sales number last week, ARO has been rallying along with the market. Factor in the recent sell-off in Oil from $100 to $80, this makes Aeropostale look very attractive. The Jeffries’ analyst said it has positive business improvement and put a $20 price target on the stock. The stock has to push up above the 100 Day Moving Average at $14.55 and with earnings not until November 30, 2011 I do not think ARO has enough strength to get there. Keep on eye on this stock with Retail Sales numbers on this Friday.
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