UPDATE: Wedbush Reiterates On Urban Outfitters As Struggles Continue

In a report published Tuesday, Wedbush analyst Morry Brown reiterated a Neutral rating on Urban Outfitters, Inc. URBN, but lowered the price target from $32.00 to $30.00. In the report, Wedbush noted, “Commentary suggests ongoing challenges for Urban, as the concept adapts to retail realities and pushes customer age higher. Executives highlighted bifurcated trends between the e-commerce and store comps at UO, with store comps remaining materially negative (total retail comps -7% for the division in 3Q), while full-price e-commerce comps have turned the corner. The commentary sounds similar to 2Q's and suggest lingering challenges at the division, at least within the stores. Management spoke of expecting improving trends in 2H15, significantly delaying the previous timing of an expected turn at the division (as recently as October, most investors expected a return to flat to positive comps in 4Q14). The company's willingness to step away from the teen customer is likely the proper strategic decision – but we expect continued turbulence as the assortment shifts to higher price points and the company attempts to attract more customers in their 20's. We remain on the sidelines, as we see limited reason to be constructive on the Urban division, which we think is necessary for shares to move higher.” Urban Outfitters closed on Monday at $30.83.