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Ahead of the Bell: Aeropostale



By AP
20 June 2008 @ 08:01 am EST

NEW YORK - Aeropostale Inc. has the opportunity to take market share away from competitors, an Oppenheimer & Co. analyst said Friday after attending the teen retailer's back-to-school product preview.

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ARO 26.56 -1.44

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"Aeropostale remains one of our top picks based on strong product execution in a tough retail environment," analyst Roxanne Meyer said in a note to clients.

The New York-based company will likely be helped as it expends its denim presentation and fashion element, and focuses on "wear now" items such as sweaters and fleece, she said.

Meyer said she left Aeropostale's Back-to-School 2008 Line Preview feeling "very positive." She rates shares "Outperform" and raised her target price to $38 from $35.

Piper Jaffray analyst Jeffrey P. Klinefelter kept a "Buy" rating and $38 price target after the preview. His target implies he expects the stock to rise 13 percent over Thursday's $33.60 close.

Shares have risen 27 percent so far this year.

A company representative was not immediately available for comment.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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