UPDATE: Morgan Stanley Maintains Overweight on Urban Outfitters, $47.00 PT

In a report published Tuesday, Morgan Stanley analyst Jay Sole maintained an Overweight rating on Urban Outfitters, Inc. URBN, with a price target of $47.00. According to the report, ICR left analysts encouraged by URBN's focus on UO and long-term strategy. The margin expansion story remains intact. URBN's 1-yr performance is -13.7 percent vs. softlines average +10.7 percent. It is believed that URBN is primed for a 2014 rebound. “Regaining momentum at UO is management's top priority,” the report noted. “UO's Fall and Winter assortment featured too few trends given its diverse shopper base and experienced fashion misses in key classifications. URBN identified a siloed merchant structure as key contributor. Meg Hayne, as newly appointed Chief Creative Officer, should help to infuse enhanced creativity, talent, processes and cross-communication at UO, similar to her performance at FP. We expect these internal process improvements to bear fruit in 2H14.” Some highlights from the report included: -”URBN laid out its 3-part antidote to negative mall traffic and price competition.” -”Early category expansion reads look promising.” -”Best-in-breed omni-channel capabilities position URBN to succeed in an increasingly online world.” URBN closed Monday at $36.89.