UPDATE: Sterne Agee Initiates Coverage on Urban Outfitters on Continued Brand Strength

In a report published Friday, Sterne Agee analyst Ike Boruchow initiated coverage on

with a Buy rating and $45.00 price target. In the report, Sterne Agee noted, “We are initiating coverage of URBN with a Buy rating and $45 PT (20-21x 2014E EPS). While a recent slowdown at the Urban brand has put the stock in the ‘penalty box,' URBN still has two of the strongest apparel brands in retail today (Anthro and Free People) to drive top-line growth. Executive ranks have been reshuffled while inventory has been cleaned up, and ongoing DTC and omni-channel initiatives set URBN up for years of compelling growth and margin expansion.” Urban Outfitters closed on Thursday at $38.30.