Urban Outfitters, Inc. (URBN) PT Raised to $59 at Telsey

Telsey analyst Dana Telsey raised the price target on Urban Outfitters, Inc. (NASDAQ: URBN) to $59.00 (from $56.00) while maintaining a Market Perform rating.

The analyst commented: 'Following the company's better-than-expected holiday sales report in mid-January, URBN deliver a nice fourth quarter earnings beat, benefiting from better sales and leverage across the board. Although momentum slightly slowed in January, the effect was relatively minimal and the company was still able to deliver HSD topline growth. In addition, the first quarter outlook speaks to continued momentum. By brand, both Free People and Anthropologie remain strong, while Urban Outfitters sequentially improved and saw lower markdowns, supporting margin expansion, and Free People Movement and Nuuly continue to provide growth opportunities. While the UO brand continues to lag and remains a work-in-progess, commentary would suggest the potential to turn to positive comps as the year progresses. Therefore, against a strong run in the stock since the third quarter report in November, we maintain our Market Perform rating. On our increased estimates, we are raising our price target to $59 from $56 previously, which assumes an 11.7x multiple on our two-year forward EPS estimate of $5.04, broadly in line with the recent NTM multiple of 11.9x."

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