Brean Capital Sees More Good News in the Pipe for Urban Outfitters

In a report published Tuesday, Brean Capital analyst Liz Pierce reiterated a Buy rating and $46.00 price target on

. In the report, Brean Capital noted, "Q4 results and the fact that Q4's momentum has carried into Q1 reinforces our belief that the URBN brands remain compelling brands with strong consumer attachment. As such, we believe the stage is set for URBN to continue to drive increase share of wallet growth 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. Finally, the 22.3 million shares remaining on the combined share repurchase authorization provides tremendous support for the stock. Accordingly, we reiterate our Buy rating and $46 TP, which is based on a multiple of 23x our FY16 EPS estimate of $2.00 and a 1.05x PEG ratio." Urban Outfitters closed on Monday at $39.51.