UPDATE: Macquarie Downgrades Urban Outfitters Amid Concerns Over More Large Stores

Macquarie downgraded Urban Outfitters, Inc. URBN in a report issued Wednesday from Outperform to Neutral and lowered the price target from $43 to $39.

Analysts Laurent Vasilescu and Stephanie Wakeham noted that the company "has traded range bound for the last 2 years. Although we appreciate the company’s omnichannel initiatives and are pleased to hear online penetration could reach 50 percent within 5 years, we are concerned that the company’s plans to continue opening large concept stores may not complement the digital push."

Vasilescu rolled estimates "forward from FY16 to FY18 with the assumption that the top line will grow at a high-single-digit rate driven by a mid-single-digit comp and a return to positive comp at the Urban Outfitters brand."

The report lowered the FY 2014 EPS estimate to $1.96 from $1.99 and lowered the FY 2015 EPS estimate to $2.38 from $2.42.

Urban Outfitters, Inc. recently traded at $34.35, down 0.98 percent.