Janney Montgomery Scott maintains a 'Neutral' on Urban Outfitters (URBN); Lowering Estimates Due to Margin Pressure

Janney Montgomery Scott maintains a 'Neutral' on Urban Outfitters, Inc. (NASDAQ: URBN), lowers price target by $2 to $26.

JMS analyst says, "As expected, management has not provided 3Q11 EPS guidance, but they had previously noted their anticipation for 3Q11 gross margin to be similar to 2Q11 in absolute terms of approximately 38%, decelerating by ~300 basis points. With ongoing weakness at Anthropologie, we now expect gross margin pressure in the 450 to 500 bp range. We are lowering our 3Q11 EPS estimate based on the continuing weakness at the Anthropologie division to $0.33 from $0.39 (the Street is at $0.39). Our FY11 EPS estimate goes to $1.38 from $1.44 (the Street is at $1.49). Our FY12 EPS estimate remains $1.74 (the Street is at $1.86)."

For more ratings news on Urban Outfitters, Inc. click here and for the rating history of Urban Outfitters, Inc. click here.

Shares of Urban Outfitters, Inc. closed at $25.78 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
• McGraw Hill (MH) PT Raised to $15 at UBS