Needham & Company Reiterates a 'Strong Buy' on Urban Outfitters (URBN); Lowering Estimates
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Price: $77.81 +2.11%
Rating Summary:
15 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Strong Buy' on Urban Outfitters, Inc. (NASDAQ: URBN) price target of $48.00.
Needham analyst says, "URBN is one of the best growth stories in the specialty retail space and should be a core holding for retail investors. Despite near term merchandise issues due to the fashion shift, we believe adjustments can be made by F2H given short lead times that should result in improved sales momentum. At ~13x our FY12 EPS lowered estimate of $1.91, URBN is trading at a slight premium to the sector average of ~12x, though at a significant discount to its average 5 year historical P/E of 27x, and long term organic growth rate of 22% to 27%. We believe that the stock deserves to trade at a premium to the industry and at least in-line with the mid-point of its growth rate of 22% to 27% (~25x) or $48 per share."
"We are reducing our F3Q, F4Q, & FY11 EPS estimates to $0.37, $0.51, & $1.46, respectively, down from $0.43, $0.54, & $1.55 to reflect more conservative sales trends at Anthro...We are lowering our F3Q, F4Q, & FY12 EPS estimates to $0.48, $0.63, & $1.91, respectively, down from $0.53, $0.66, & $1.99."
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.
Needham analyst says, "URBN is one of the best growth stories in the specialty retail space and should be a core holding for retail investors. Despite near term merchandise issues due to the fashion shift, we believe adjustments can be made by F2H given short lead times that should result in improved sales momentum. At ~13x our FY12 EPS lowered estimate of $1.91, URBN is trading at a slight premium to the sector average of ~12x, though at a significant discount to its average 5 year historical P/E of 27x, and long term organic growth rate of 22% to 27%. We believe that the stock deserves to trade at a premium to the industry and at least in-line with the mid-point of its growth rate of 22% to 27% (~25x) or $48 per share."
"We are reducing our F3Q, F4Q, & FY11 EPS estimates to $0.37, $0.51, & $1.46, respectively, down from $0.43, $0.54, & $1.55 to reflect more conservative sales trends at Anthro...We are lowering our F3Q, F4Q, & FY12 EPS estimates to $0.48, $0.63, & $1.91, respectively, down from $0.53, $0.66, & $1.99."
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.
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