Goldman Sachs analyst cuts Aeropostale to ‘Sell,’ says its stock will likely start to slow

Goldman Sachs analyst lowers Aeropostale rating

NEW YORK — A Goldman Sachs analyst lowered her rating on Aeropostale Inc. Friday, saying the apparel retailer’s stock will likely start to slow as competitors make headway.

Analyst Michelle Tan said the chain’s shares have bested its rivals by 35 percent for the year to date, but that the gap may narrow on easing comparisons and improving inventory.

Tan said Aeropostale’s inventory is not as trim as it was during the first half of the year, and recent promotions indicate the New York-based company’s margin gains are slowing down and sales are not picking up.

The analyst cut Aeropostale to “Sell” from “Neutral” and reduced its six-month price target to $41 from $43.

The company’s stock dropped 96 cents, or 2.2 percent, to $41.81 in midday trading. Over the past year, the shares have traded in a range of $12.52 to $44.85.