Urban Outfitters, Inc. (URBN) PT Raised to $55 at Baird

Baird analyst Mark Altschwager raised the price target on Urban Outfitters, Inc. (NASDAQ: URBN) to $55.00 (from $49.00) while maintaining a Neutral rating.

The analyst commented: "FP/Anthro brands saw encouraging acceleration through FQ3 (better than expected following volatility early in the quarter), with good momentum continuing into early holiday. Management guidance embeds ~stable +LSD% retail comp trends into FQ4, leaving room for some deceleration at FP (against strong prior year growth) -- a range that we view as achievable (and setting up for a potentially positive guidance update at management's ICR appearance in January). The UO brand is still working to stabilize top line, but Y/Y declines in markdowns in FQ3 are a step in the right direction in bringing brand margins back to breakeven, and progress on the brand turnaround story could present a catalyst for shares in 2025. All in, resilient brand momentum at FP/Anthro through a choppy consumer macro, building contributions from the Nuuly platform, potential upside at UO, a strong balance sheet ($8/share in cash exiting FQ3; leaves lots of dry powder for potential buybacks) and undemanding valuation (~12x EPS, near the multi-year average), we are warming to shares but would like to see more meaningful signs of inflection at the UO brand to get more aggressive."

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