NEW YORK (TheStreet) -- Aeropostale (ARO) shares are facing a steep drop today, down -7.7% to $3.60, after analysts at Nomura (NMR) lowered its price target on the company.
The firm maintained its "neutral" rating on the shares while lowering its price target to $5 from $6.
Aeropostale shares rallied last week after the company announced that it had secured a $150 million financing deal with Sycamore Partners.
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TheStreet Ratings team rates AEROPOSTALE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate AEROPOSTALE INC (ARO) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: