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Brean Capital Reiterates Buy, Raises PT On Urban Outfitters On Upside To Q4

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In a report published Monday, Brean Capital analyst Liz Pierce reiterated a Buy rating on Urban Outfitters, Inc. (NASDAQ: URBN), and raised the price target from $42.00 to $46.00.

In the report, Brean Capital noted, "We are reiterating our positive stance on URBN ahead of tonight's Q4 earnings based on our expectation that in FY16 all URBN brands will be comp positive (which has not happened since Q2 FY14) driven by product extensions/expansions at each brand as well as an improved UO assortment. We also see considerable margin expansion from current levels stemming from improved product at UO and from increased operating efficiencies such as a more optimized inventory position. Moreover, we believe all URBN brands have strong consumer attachment positioning for market share gains. Finally, the recent 20 million share buyback authorization, which was in addition to the 2.6 million shares remaining (as of Feb 26th) under its previous program, provides tremendous support for the stock. Accordingly, we reiterate our Buy rating and raise our TP to $46 from $42. Our $46 TP is based on a multiple of 24x our FY16 EPS estimate of $1.92 and a 1.1x PEG ratio."

Urban Outfitters closed on Friday at $38.89.

Latest Ratings for URBN

Nov 2016MKM PartnersMaintainsNeutral
Nov 2016Deutsche BankMaintainsHold
Nov 2016WunderlichDowngradesBuyHold

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Posted-In: Brean Capital Liz PierceAnalyst Color Price Target Analyst Ratings


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