UPDATE: Wedbush Upgrades Urban Outfitters to Outperform, Raises PT on Multiple Positive Factors

In a report published Tuesday, Wedbush analyst Betty Chen upgraded the rating on

from Neutral to Outperform, and raised the price target from $42.00 to $52.00. In the report, Wedbush noted, “We are upgrading shares to OUTPERFORM from NEUTRAL given (1) on-trend merchandise, (2) solid inventory control, (3) stellar online/mobile penetration, (4) compelling growth from existing brands and potential acquisitions. Despite a choppy retail landscape, URBN posted sequential comp gains at Anthro and FP, along with lower markdowns and higher full-priced sell-throughs. With trend-right merchandise, we believe management's plans for ‘at least 50 bps in gross margin gain in H2' appears conservative.” Urban Outfitters closed on Monday at $39.92.