Urban Outfitter Shares Tumble On Wedbush's Concern Over Anthropologie Slowdown
Wedbush analyst Morry Brown downgraded shares of Urban Outfitters (NASDAQ: URBN) from Outperform to Neutral and lowered the price target from $46.00 to $37.00 on the risk associated with Anthropologie.
Brown highlighted that Anthropologie's dramatic increase in sales promotions suggests a slowdown in sales. The analyst wrote, "While sales trends at Anthro likely remain near the top of the sector, incremental promotions -- even if minor -- suggest the potential for a modest slowdown."
Wedbush added that Urban Outfitters has "less margin for error" given the risk from the Anthropology slowdown.
The firm does not expect any change for the Urban brand. Brown sees in-line promotions and clearance results.
Shares of Urban Outfitter closed at $33.86 on Monday. The stock fell as much as 3.66 percent Tuesday morning to $32.62. Shares are currently down 1.24 percent.
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