Nomura Securities Raises Price Target on Urban Outfitters (URBN) to $33
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Nomura Securities reiterated a Neutral rating on Urban Outfitters, Inc. (NASDAQ: URBN), and raised the price target to $33.00 (from $30.00), following the company's 2Q earnings report.
Nomura commented, "With brands & department stores across the channel talking about normalizing their inventory and distribution, URBN's comp and margin beat were notably impressive, with UO and Anthro operating at near peak merchandise margins. At this point (and at 14x FY17 EPS), we await visibility on the ability to grow beyond peak merch margins, however, with momentum on their side and ongoing bottom line growth, we would not be surprised to see investors push shares higher in the NT. Mgmt noted the 2Q quarter started off weak and progressively improved, with July stronger than June, which was stronger than May (they called out some pent-up weather-driven demand due to the weaker May). On current trends, mgmt noted that although trends are ~1-1.5 point lighter than 2Q comp trends, normalizing for calendar compares (it has had 1 less weekend than LY), Aug is generally consistent with 2Q. On a related note, we'd expect a similar dynamic when the company files its 10Q with QTD comps."
Shares of Urban Outfitters, Inc. closed at $31.24 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
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