NEW YORK, February 10 (FinanceEnquiry.com) - Analyst Jaon Aaseda of S&P Capital IQ upgrades the shares of Aeropostale (NYSE: ARO) from HOLD to BUY, while raising his estimates for the company. The target price has been raised from $18 to $20.

In a research note published this morning, the analyst mentions that according to recent channel checks, the company witnesses no winter inventory and an expanded fashion lineup for Spring. As Aeropostale focused on inventory reduction for the year FY2012, it bodes well for Aeropostale for FY13, the analyst says. S&P Capital IQ expects Aeropostale to refine its product assortment further as the year progresses while expecting lower markdowns and declining product costs to boost margin expansion. The EPS estimate FY13 has been raised from $1.15 to $1.40, while for FY2012 it is maintained at $0.90.