Citi Reiterates Buy on Urban Outfitters

Citi Investment Research is out with a research report on Urban Outfitters Inc. URBN and it is reiterating its Buy rating and a $34 price target on shares after it reported earnings. In a note to clients, Citi Investment Research writes, "Inventory ended 3Q higher than we expected as the Urban division in particular experienced a tough October. But the real news is a change in URBN's inventory posture (finally) that should pave the way for an earnings improvement in 2012. The stance to end 4Q with inventory better aligned with sales reinforces our view that URBN's margin trough is confined to 2H11. We think the next two data points are neutral (the 10Q in Dec) and positive (inventory to end Jan) and we recommend leaning into the wind here to build positions into 1Q12." Shares of URBN are down $1.80 in pre-market trading to $25.03.