UPDATE: Jefferies Raises PT to $24, Maintains Underperform on Urban Outfitters

Jefferies reiterated its its Underperform rating on Urban Outfitters URBN as it believes valuation is still excessive. However, price target on shares went up from $17 to $24 on better than expected second quarter results. Jefferies commented, "Mgmt did a good job navigating 2Q with better sales, margins and most importantly, earnings. Shares will be up as a result, but we still expect the company's LT return and margin profile to be subdued and growth rate to slow, making a ~$5B market cap excessive in our view. We'd rather own much cheaper names with better growth potential like ANF and GES. Reiterate underperf.; PT to $24 on higher EPS estimates after today's beat." Urban Outfitters closed at $31.28 on Monday.