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UPDATE: Mizuho Securities Downgrades Urban Outfitters On Expectations Of Soft 3Q And Weak 4Q Gross Margin Commentary

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In a report published Friday, Mizuho Securities analyst Betty Chen downgraded the rating on Urban Outfitters, Inc. (NASDAQ: URBN) from Buy to Neutral, and lowered the price target from $36.00 to $30.00.

In the report, Mizuho Securities noted, “We are downgrading URBN to Neutral as we look for soft 3Q results and disappointing 4Q margin commentary to reinforce a lack of sequential improvement. In particular, (1) continued product issues at UO, (2) signs of slowing momentum at Anthro against difficult compares, and (3) incremental promotions suggest gross margin declines and risk to consensus. Although URBN may rein in SG&A spending, investors will likely still be disappointed with the lack of product-led strength and inconsistency in the portfolio of brands. While sentiment is likely low following the preannouncement, shares appear fairly valued at 15x.”

Urban Outfitters closed on Thursday at $31.65.

Latest Ratings for URBN

DateFirmActionFromTo
Aug 2019MaintainsNeutral
Aug 2019MaintainsHold
Aug 2019ReiteratesBuy

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Posted-In: Betty Chen Mizuho SecuritiesAnalyst Color Downgrades Analyst Ratings

 

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