Wedbush Downgrades Urban Outfitters, Inc. (URBN) to Underperform; Lackluster Checks - Reducing Estimates Below Consensus & Cutting PT
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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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Wedbush downgraded Urban Outfitters, Inc. (NASDAQ: URBN) from Neutral to Underperform, price target lowered from $30 to $20.
Wedbush analyst says, "We are downgrading shares of URBN as we believe comps may not accelerate materially from the –LSD QTD comp trends indicated by management on 9/2/11 following our checks indicating lackluster performance at both UO and Anthropologie. We are, therefore, cutting our estimates to below consensus levels and reducing our PT to $20. In particular, we note poor sell-throughs in women’s apparel at both UO and Anthropologie, as our Retail Specialists noted building inventory levels (+12% at Q2-end) despite increased markdowns and incremental promotional efforts."
"We are lowering our Q3 EPS estimate to below consensus at $0.34 from $0.40 prior as we foresee additional fashion adjustments and high clearance inventory to pressure sales and margins...For F11 and F12, we are lowering our EPS estimates to $1.36 from $1.52 and $1.65 from $1.88, respectively."
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 $23.79 yesterday.
Wedbush analyst says, "We are downgrading shares of URBN as we believe comps may not accelerate materially from the –LSD QTD comp trends indicated by management on 9/2/11 following our checks indicating lackluster performance at both UO and Anthropologie. We are, therefore, cutting our estimates to below consensus levels and reducing our PT to $20. In particular, we note poor sell-throughs in women’s apparel at both UO and Anthropologie, as our Retail Specialists noted building inventory levels (+12% at Q2-end) despite increased markdowns and incremental promotional efforts."
"We are lowering our Q3 EPS estimate to below consensus at $0.34 from $0.40 prior as we foresee additional fashion adjustments and high clearance inventory to pressure sales and margins...For F11 and F12, we are lowering our EPS estimates to $1.36 from $1.52 and $1.65 from $1.88, respectively."
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 $23.79 yesterday.
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