UPDATE: Morgan Stanley Lowers PT on Urban Outfitters to $34

Morgan Stanley is out with its report today on Urban Outfitters

, lowering its PT from $36 to $34. In its report, Morgan Stanley writes, "Based on our lowered GM estimate and a slightly lower comp at Anthro (stores -7% from -5% prior), we lower 3Q EPS to $0.32 from $0.38. We are also lowering 4Q to $0.50 from $0.56 on more conservative comp and margin assumptions. We trim our PT to $34 from $36 based on 18x our $1.90 2012 estimate ($1.98 prior)." Morgan Stanley maintains Overweight on URBN. At the time of posting, shares of URBN were trading at $24.70, down 4.19% from Tuesday's close.