UPDATE: Oppenheimer Reiterates On Urban Outfitters On Murky Near-Term Visibility

Courtesy of Benzinga.

In a report published Friday, Oppenheimer analyst Anna Andreeva reiterated an Outperform rating on Urban Outfitters, Inc. (NASDAQ: URBN), but lowered the price target from $45.00 to $40.00.

In the report, Oppenheimer noted, “Disappointments in retail continue, with URBN announcing after the close (2+ weeks left of 3Q14) that negative comp trends continued from Sept. quarterly update (now modeling -1% vs. Street +2% previously), causing GM deleverage (below 1H’s down 200 bps). Sales/margin shortfall due to ongoing weakness at UO (retail turnarounds typically take longer) and no pickup at Anthro, despite better inventory replenishment starting mid-Sept. Lowering 3Q14/’14’/15 ests to $0.40/$1.78/$2.10; with stock getting de-risked in after-hours trading, longer-term story compelling for some of the best growth/omni-channel prospects; near-term visibility more murky now.”

Urban Outfitters, Inc. closed on Thursday at $34.56.

Posted-In: Anna Andreeva OppenheimerAnalyst Color Price Target Analyst Ratings