Nomura Securities Maintains a 'Neutral' on Urban Outfitters (URBN); Staying Sidelined Despite Positive Q1 Surprises

May 22, 2012 9:39 AM EDT Send to a Friend
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Price: $35.73 -0.94%

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    17 Buy, 15 Hold, 0 Sell

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    Up: 26 | Down: 32 | New: 6
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Nomura Securities maintains a 'Neutral' on Urban Outfitters, Inc. (NASDAQ: URBN) price target raised $1 to $29.

Analyst, Paul Lejuez, said, "1Q had some positive surprises: 1) EPS didn’t decrease YoY for the first time in the past four quarters; 2) Anthro comps didn’t miss our forecasts and 3) GM and SG&A were better than our expectations. Despite these positives, implied 2Q guidance is light and we believe the company’s GM beat in 1Q in part was the result of not taking markdowns to be clean on inventory – markdowns that will now hit 2Q. That keeps us on the sidelines. We believe the risk/reward skews slightly favorably, but not favorably enough to justify a Buy rating. F12E EPS from $1.43 to $1.47 and our F12E EPS of $1.71 to $1.78."

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 $26.16 yesterday.




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