Urban Outfitters (URBN): Notes From Management Meetings - Wells Fargo

September 28, 2016 8:09 AM EDT
Get Alerts URBN Hot Sheet
Price: $26.19 -2.93%

Rating Summary:
    14 Buy, 30 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Wells Fargo analyst, Ike Boruchow, reiterated his Market Perform rating on shares of Urban Outfitters, Inc. (NASDAQ: URBN) and raised his valuation range to $32-$34 from $28-$30 after hosting meetings with Frank Conforti, CFO and Oona McCullough, IR.

Amidst a difficult retail backdrop for apparel, the analyst thinks URBN seems to be doing all the right things:

1) inventories are lean and continue to be well managed heading into holiday (down at all brands as of Q2)

2) the UO concept is benefitting from on-trend merchandise (a new fashion cycle appears to be emerging) while markdown levels are at historic lows

3) Anthro, though still not out of the woods, is seeing GM improvement (via improving IMUs) with potential to see improved comp performance in Q4 (as they lap the biggest declines from their women’s apparel challenges).

Following a strong start to the year (URBN +40% vs. SPX +6% since May), the key going forward will likely be more about Anthro’s ability to drive comps/margin, as the benefits seen over the past 12-18 months at UO likely begin to moderate.

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 $35.13 yesterday.

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