UPDATE: Bank of America Reiterates Buy Rating, Lowers PT on Urban Outfitters on Improving Trends

In a report published Tuesday, Bank of America analyst Lorraine Hutchinson reiterated a Buy rating on

, but lowered the price target from $40.00 to $35.00. In the report, Bank of America noted, “Urban Inc. reported 3Q15 EPS of $0.35, below our estimate of $0.40. The miss was driven by lower gross margin, partly offset by higher comps. Comps fell 1% in the quarter, as positive comp growth at Free People (+15%) and Anthropologie (+2%) was offset by continued weakness at Urban Outfitters brand (-7%). September was particularly soft but results improved in October and management has seen continued strength into November. We are lowering our F2015 EPS estimate by 7c to $1.62 to reflect the miss and cutting our PO by $5 to $35 to reflect our new estimates. We continue to view URBN as a strong long-term growth story and maintain our Buy rating.” Urban Outfitters closed on Monday at $30.83.