Wall Street Strategies Upgrading Aeropostale

Wall Street Strategies is out with a research report on Aeropostale Inc. (NYSE: ARO) and is raising its price target to $20 from $18, and is upgrading shares to Buy from Hold.

In a note to clients, Wall Street Strategies writes, "Along similar lines to our thinking on American Eagle Outfitters (AEO), it's likely that Aeropostale (ARO) has endured challenging sales trends in the second quarter. Unlike American Eagle, however, we think Aeropostale is having fairly subdued sales trends in most product categories, indicative of the after affects of disappointing product execution months ago. At the end of the day, we are not expecting much from the 2Q11 earnings release in August, and neither is the market considering the valuation on the stock (3.0x trailing EV/EBITDA)."

Shares of ARO are up 45 cents to $17.44, a gain of 2.65%.