Jefferies Cuts Price Target on Urban Outfitters (URBN) & Encourages Investors to Buy Guess (GES)
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Price: $74.24 +2.19%
Rating Summary:
15 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
15 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies reports that investors should stay far away from shares of Urban Outfitters (Nasdaq: URBN) and move into shares of Guess Inc. (NYSE: GES). The long-term outlook for Urban is cloudy while the strength of the Guess brand has been proven by its high international penetration.
Guess has multiple growth opportunities in Asia and Europe as Urban Outfitters has 2 brands maturing and a few unproven new brands.
The firm believes that Guess will increase its guidance as they initially set the bar really low. Jefferies also feels that the Street will lower its estimate of Urban's estimates. Margins look to contract at URBN while stayign at their current levels or improve at GES.
An analyst at Jefferies comments, "We believe expectations for GES are increasingly negative, as witnessed by the short interest days to cover metric which has been increasing over the last two months. This contrasts with URBN where we believe there is still much hope for a quick turnaround and short interest has been on the decline."
Jefferies is reiterating its Underperform rating on shares of Urban Outfitters, Inc. and is cutting its price target from $23 to $19. The firm also lowered its 2012 and 2013 EPS estimates for URBN from $1.40 and $1.75 to $1.36 and $1.25.
The firm is maintaining its Buy rating and $60 price target on shares of Guess Inc. Jefferies reaffirmed its 2012 and 2013 EPS estimates $3.40 and $4.00.
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 $25.26 yesterday.
Guess has multiple growth opportunities in Asia and Europe as Urban Outfitters has 2 brands maturing and a few unproven new brands.
The firm believes that Guess will increase its guidance as they initially set the bar really low. Jefferies also feels that the Street will lower its estimate of Urban's estimates. Margins look to contract at URBN while stayign at their current levels or improve at GES.
An analyst at Jefferies comments, "We believe expectations for GES are increasingly negative, as witnessed by the short interest days to cover metric which has been increasing over the last two months. This contrasts with URBN where we believe there is still much hope for a quick turnaround and short interest has been on the decline."
Jefferies is reiterating its Underperform rating on shares of Urban Outfitters, Inc. and is cutting its price target from $23 to $19. The firm also lowered its 2012 and 2013 EPS estimates for URBN from $1.40 and $1.75 to $1.36 and $1.25.
The firm is maintaining its Buy rating and $60 price target on shares of Guess Inc. Jefferies reaffirmed its 2012 and 2013 EPS estimates $3.40 and $4.00.
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 $25.26 yesterday.
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