UPDATE: ISI Group Raises Urban Outfitters' PT

Delores Land, Benzinga Staff Writer

May 22, 2012 9:24 AM

Tickers: URBN

According to a research report published this morning, ISI Group has increased Urban Outfitters' (NASDAQ: URBN) PT to $28.

In the report, ISI Group said, "URBN posted a solid 1Q last night driven by better-than-expected full-price selling, and the market should be even more enthused by management's plans for 200-250 bps of gross margin expansion in 2H12 after 8 consecutive quarters of erosion. However, while 1Q improvements may foretell the turning point in URBN's recovery, Anthropologie's continued weakness (2% comp) and management's commentary that weather was a key driver of 1Q success temper our enthusiasm a bit, and we're still hoping for more sure data points suggesting the turnaround story has moved to solid ground."

ISI Group maintains its Hold rating on Urban Outfitters, which is currently trading at $27.95.

Tags: ISI Group

Posted in: Analyst Color, Price Target, Analyst Ratings