Jefferies Upgrading Aeropostale

Jefferies & Co. is out with a research report on Aeropostale, Inc (NYSE: ARO) and is upgrading shares to Buy and raising its price target to $20.

In a note to clients, Jefferies & Co. writes, "In this report we highlight the 5 reasons that we believe investors should be buying shares of ARO. We believe the company is currently near trough fundamentals and expect improving trends over the coming quarters. We do not view this story as broken and believe ARO continues to serve an important role as the opening price point brand in teen retail. We are upgrading shares to Buy, raising FY'13 EPS to $1.50 and our PT to $20."

Shares of ARO gained 55 cents yesterday to close at $12.13, a gain of 4.75%.