Urban Outfitters (NASDAQ:URBN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Thursday. The brokerage currently has a $42.00 target price on the apparel retailer’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 13.39% from the company’s previous close.
According to Zacks, “Shares of Urban Outfitters have surged and outpaced the industry in a year, courtesy of positive earnings and sales surprise streak. We are upbeat on the company’s third-quarter fiscal 2019 performance, wherein both the top and bottom lines grew year over year and also beat the consensus mark for the sixth successive time. Notably, comparable retail segment net sales increased for the fifth quarter in row, while all the three brands registered comps growth. We believe new store openings, increased digital penetration, merchandising improvements and international expansion bode well. Management is also making efforts to enhance the performance of brands through store refurbishment and by bringing in more compelling assortments. However, a likely increase in SG&A expenses during the final quarter owing to higher digital marketing investments, incentive-based compensation and increased store payroll may strain margins to an extent.”
A number of other research analysts have also recently weighed in on the stock. Jefferies Financial Group set a $58.00 price objective on shares of Urban Outfitters and gave the stock a “buy” rating in a research note on Tuesday, November 20th. Bank of America set a $50.00 price objective on shares of Urban Outfitters and gave the stock a “buy” rating in a research note on Tuesday, November 20th. MKM Partners dropped their price objective on shares of Urban Outfitters from $47.00 to $43.00 and set a “neutral” rating for the company in a research note on Tuesday, November 20th. Deutsche Bank set a $35.00 price objective on shares of Urban Outfitters and gave the stock a “sell” rating in a research note on Tuesday, November 20th. Finally, Wells Fargo & Co dropped their price objective on shares of Urban Outfitters from $50.00 to $44.00 and set a “market perform” rating for the company in a research note on Tuesday, November 20th. Three research analysts have rated the stock with a sell rating, twelve have given a hold rating and nine have given a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $45.32.
Urban Outfitters (NASDAQ:URBN) last issued its quarterly earnings data on Monday, November 19th. The apparel retailer reported $0.70 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.63 by $0.07. Urban Outfitters had a net margin of 5.44% and a return on equity of 20.65%. The business had revenue of $973.50 million during the quarter, compared to analysts’ expectations of $967.82 million. During the same period last year, the company posted $0.41 EPS. The company’s revenue was up 9.0% on a year-over-year basis. As a group, equities research analysts anticipate that Urban Outfitters will post 2.73 EPS for the current year.
Hedge funds have recently added to or reduced their stakes in the business. Mount Yale Investment Advisors LLC purchased a new stake in Urban Outfitters in the 2nd quarter worth approximately $109,000. Point72 Hong Kong Ltd grew its stake in Urban Outfitters by 145.5% in the 2nd quarter. Point72 Hong Kong Ltd now owns 2,600 shares of the apparel retailer’s stock worth $116,000 after acquiring an additional 1,541 shares during the period. Stratos Wealth Partners LTD. purchased a new stake in Urban Outfitters in the 3rd quarter worth approximately $149,000. Envestnet Asset Management Inc. grew its stake in Urban Outfitters by 679.4% in the 2nd quarter. Envestnet Asset Management Inc. now owns 3,710 shares of the apparel retailer’s stock worth $166,000 after acquiring an additional 3,234 shares during the period. Finally, Advisors Preferred LLC grew its stake in Urban Outfitters by 50.2% in the 2nd quarter. Advisors Preferred LLC now owns 3,780 shares of the apparel retailer’s stock worth $169,000 after acquiring an additional 1,264 shares during the period. 81.24% of the stock is owned by hedge funds and other institutional investors.
About Urban Outfitters
Urban Outfitters, Inc, a lifestyle products and services company, engages in the retail and wholesale of general consumer products. The company retails women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28 under the Urban Outfitters brand; and women's casual apparel and accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty products for women aged 28 to 45 under the Anthropologie brand.
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