UPDATE: Credit Suisse Reiterates Neutral Rating, Raises PT on Urban Outfitters, Inc. as Top-Line Turns Corner

In a report published Tuesday, Credit Suisse analyst Christian Buss reiterated a Neutral rating on

, and raised the price target from $34.00 to $45.00. In the report, Credit Suisse noted, "Urban Outfitters showed the first quarter for positive comps across brands in six quarters. The quality of revenues was suspect however, with gross margin down over 200bp Y/Y, suggesting elevated promotional activity as a driver of volume at the expense of profits. This stands in contrast to the company's stated aim to elevate its brands and increase AUR's, a move we view with some skepticism in light of the generally deflationary apparel environment. As a result, while moving out of a period of downward revisions to earnings estimates, we believe that a period of accelerated earnings momentum may be a ways off. We maintain our Neutral rating and raise our Target Price to $45 from $34." Urban Outfitters, Inc. closed on Monday at $39.51.