UPDATE: Morgan Stanley Downgrades Urban Outfitters As Recovery Is Not On Track

In a report published Friday, Morgan Stanley analyst Kimberly C. Greenberger downgraded the rating on

from Overweight to Equal-Weight, and lowered the price target from $44.00 to $31.00. In the report, Morgan Stanley noted, “Our investment thesis was predicated on sales stabilizing and margin recovery, which now looks to be further out than we expected. Poor earnings visibility and little margin stabilization likely put pressure on the P/E multiple until URBN can deliver consistent progress.” Urban Outfitters, Inc. closed on Thursday at $34.56.