Market Overview

Credit Suisse Sees Urban Outfitters As Positioned For 2H Recovery

Share:

In a report published Tuesday, Credit Suisse analyst Christian Buss reiterated an Outperform rating and $42.00 price target on Urban Outfitters (NASDAQ: URBN).

In the report, Credit Suisse noted, “URBN reported soft 2Q14 results with challenges at the Urban Outfitters brand persisting through the quarter. While guidance implies continued pressure on comps and margins, URBN has lean inventory levels heading into 3Q (up 4% Y/Y) and is chasing product, which we believe positions the company for likely upside to guidance.

"In spite of demand and product execution challenges at the Urban brand, we continue to believe that the company has a best-in-class approach to specialty apparel retail given: 1) Appropriate retail square footage; 2) Accelerated investments in eCommerce; and 3) Expansion into higher-growth non-apparel categories. We expect clean inventories and greater potential for full-price selling to likely lead to merchandise margin expansion and accelerated earnings power in 2H14. We reiterate our Outperform rating and maintain our target price of $42.”

Urban Outfitters closed on Monday at $36.92.

Latest Ratings for URBN

DateFirmActionFromTo
May 2019MaintainsNeutral
May 2019MaintainsMarket Perform
May 2019MaintainsBuy

View More Analyst Ratings for URBN
View the Latest Analyst Ratings

Posted-In: Christian Buss Credit SuisseAnalyst Color Reiteration Analyst Ratings

 

Related Articles (URBN)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
WSCInitiates Coverage On19.0
ACERDowngrades
ANGIMaintains20.0
KRYSReiterates73.0
MSFTMaintains90.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Brent Below $102 Ahead Of U.S. Data

D.A. Davidson & Co. Sees Healthy Quarter With Excellent Momentum Heading Into FY15 For Performance Sports Group Ltd.