Janney Capital Boosts Target on Urban Outfitters (URBN), Sees a Product Turn
Tweet
Share
E-mailGet Alerts URBN Hot Sheet
Price: $39.36 +2.07%
Rating Summary:
11 Buy, 27 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
11 Buy, 27 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Join SI Premium – FREE
Janney Capital Markets lifted its price target on Buy-rated Urban Outfitters, Inc. (NASDAQ: URBN) from $31 to $36 following a management meeting citing increased confidence in the product turn.
The firm notes the focus at both the Urban Outfitters and Anthropologie divisions is on driving full price comps and improving merchandise margins. One main topic discussed was the opportunity in e-commerce and mobile as a future opportunity for Urban Outfitters. Over time, management believes direct-to-consumer could grow from roughly 20% of sales to approximately 50% and still maintain the higher operating margin structure versus brick and mortar.
Commenting on this, the analyst said, "We continue to believe in URBN’s potential as a back half 2012 story. Our checks suggest that product at both Urban Outfitters and Anthropologie is benefiting from the early spring and color and print trends, and we believe March comp trends are benefiting as a result."
The firm continues to expect a turn in the business in the 2nd-half of 2012 driven by:
1) leadership changes that are likely to positively impact the business in 2H12, 2) a focus on improving inventory discipline, and 3) improved merchandising at both Urban Outfitters and Anthropologie.
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 $29.49 yesterday.
The firm notes the focus at both the Urban Outfitters and Anthropologie divisions is on driving full price comps and improving merchandise margins. One main topic discussed was the opportunity in e-commerce and mobile as a future opportunity for Urban Outfitters. Over time, management believes direct-to-consumer could grow from roughly 20% of sales to approximately 50% and still maintain the higher operating margin structure versus brick and mortar.
Commenting on this, the analyst said, "We continue to believe in URBN’s potential as a back half 2012 story. Our checks suggest that product at both Urban Outfitters and Anthropologie is benefiting from the early spring and color and print trends, and we believe March comp trends are benefiting as a result."
The firm continues to expect a turn in the business in the 2nd-half of 2012 driven by:
1) leadership changes that are likely to positively impact the business in 2H12, 2) a focus on improving inventory discipline, and 3) improved merchandising at both Urban Outfitters and Anthropologie.
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 $29.49 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Correction: Citi Upgrades Sirius XM Radio (SIRI) to Neutral
- UBS Upgrades Swiss Prime Site AG (SPSN:SW) (SWPRF) to Buy
- Bharti Airtel Ltd (BHARTI:IN) PT Raised to INR1,520 at Citi
Create E-mail Alert Related Categories
Analyst Comments, Analyst PT Change, Hot CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
