Canaccord Genuity Raises PT and Estimates on Urban Outfitters, Inc. (URBN); Q2 Sales Momentum

August 21, 2012 9:09 AM EDT
Get Alerts URBN Hot Sheet
Price: $26.19 --0%

Rating Summary:
    14 Buy, 30 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 24 | New: 12
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Canaccord Genuity maintains a 'Hold' on Urban Outfitters, Inc. (NASDAQ: URBN) price target of $38.00 (from $26.00).

Analyst, Laura Champine, said, "URBN’s Q2 EPS of $0.42 was ahead of our $0.31 estimate and consensus at $0.33. Comparable retail sales, including the DTC channel, increased 4% yr./yr. on top of +1%. We were looking for a flat performance. Comparable retail sales, including direct, were up 6% on top of +1.1% at UO, 100bps ahead of our forecast, and they were flat at Anthropologie on top of flat, better than our estimate of a 7% decline. The gross margin contracted 30bps yr./yr. versus our projection of a 235bps decline as a result of lower markdown levels. URBN generated 5bps of SG&A expense leverage. We had forecast a 160bps increase. We remain HOLD rated with the shares at 19x our FY14 EPS estimate and 9x FY14E EV/EBITDA."

FY13 EPS estimate raised from $1.46 to $1.59. Recent channel checks indicate better fashion trends with the overall Anthropologie impression much improved.

For an analyst ratings summary and ratings history on Urban Outfitters, Inc. click here. For more ratings news on Urban Outfitters, Inc. click here.

Shares of Urban Outfitters, Inc. closed at $31.28 yesterday.

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