UPDATE: Citigroup Downgrades Urban Outfitters to Sell, Drops PT to $20

Citigroup lowers its rating on Urban Outfitters (NASDAQ: URBN) to Sell from Buy and lowers its price target to $20 from $34 as departure of the company's CEO puts a major dent in near-term confidence on a turnaround.

Citigroup says, "It appears that Mr. Senk left suddenly but on his own accord; we expect to hear about his plans in the coming days or weeks. Was it the challenges inherent in managing an organization that had become more complex over time? A disagreement over the direction of a particular division? A recognition that the competitive landscape has changed? ...Whatever the case, the development shakes our faith that a turn in the business is imminent. Mr. Senk and CFO Eric Artz had begun to move URBN in the right direction on inventory but the lack of C-level tenure at the divisional level suggests that organizational issues could remain a serious distraction over the next year."

URBN closed at $29.41 per share on Tuesday.