Oppenheimer Reiterates Outperform, $35 PT On Urban Outfitters

In a note out today, Oppenheimer reiterated an outperform rating and $35 price target on Urban Outfitters URBN, implying substantial upside from where the shares currently trade. “Our 12-18 month $35 PT assumes that URBN should trade at 22x our forward EPS estimate of $1.59, a slight premium to its historical average of 20x. We believe this is justified given its cautious approach to the long-term buildout of its multi-brand strategy domestically, internationally and online as well as its unique brand/product positioning and multiple growth vehicles. Plus, we are confident in the pending fashion shift and believe that URBN is best positioned across concepts to capitalize on this in F13 and beyond,” Oppenheimer said in the note.