Cramer Believes Urban Outfitters (URBN) Could Be a $42 Stock

Jim Cramer touted shares of Urban Outfitters (Nasdaq: URBN) last night on Mad Money, saying that the stock is "down for all the wrong reasons". He argued that the recent weakness (not sure where Cramer is getting this from; the stock is up nearly 50% from mid-July) is a blessing in disguise, providing investors with a great entry point.

Cramer sees solid earnings and continued growth over the next several quarters and years, calling Urban Outfitters a "new concept incubator". And with $583 million in cash, the trendy retailer should have no problem acting on these exciting new concepts, according to Jim. The pundit also likes that Urban Outfitters plans to expand its position in Europe to 50 stores.

Finally, with very reasonable inventory levels, Cramer noted that Urban Outfitters is far less likely to see margin pressure moving forward. Cramer concluded the segment by saying that he believes shares of the retailer could jump another 50%, putting its stock price just under $42.

Urban Outfitter shares are up about 2.5% to $27.91 today.

To see all the market-moving calls by Cramer, visit our Jim Cramer entity page.

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