UPDATE: Canaccord Genuity Upgrades Urban Outfitters to Buy, Reiterates $48 PT on Undervalued Growth Prospects

In a report published Friday, Canaccord Genuity analyst Laura Champine upgraded the rating on

from Hold to Buy, and reiterated the $48.00 price target. In the report, Canaccord Genuity noted, “We believe the market has overreacted since URBN filed its 10-Q on September 9, indicating comparable retail sales were trending mid-single-digit positive QTD. The stock has declined 11% since that time, compared with the S&P 500 index +3% and the RLX index +4%. We view URBN's mid-single-digit growth as a healthy indication of sustained market share gains given the challenging apparel environment that includes flat to negative mall traffic, and we view the pullback as a buying opportunity. Shares currently trade at 18x our C2014 EPS estimate and 8x C2014E EV/EBITDA, which we do not believe reflects URBN's long-term growth potential. We are upgrading shares from Hold to BUY and maintaining our DCF-model-generated price target of $48.” Urban Outfitters closed on Thursday at $38.12.