Needham & Company Reiterates a 'Strong Buy' on Urban Outfitters (URBN); Positive New Leadership Additions & Changes Announced at UO and Anthropologie

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 fashion has improved at UO while key categories at Anthro remain challenged, but could improve by F1H12, due to short lead times. At ~14x our FY12 EPS estimate of $1.84, URBN is trading in line with the sector average of ~14x, though at a significant discount to its average 5 year historical P/E of 27x, and long term organic growth rate of 25% 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 25% to 27% (~26x) or $48 per share...We are lowering our F1Q, F2Q, F3Q, F4Q, & FY12 EPS estimates to $0.30, $0.45, $0.47, $0.62, & $1.84, respectively, down
from $0.33, $0.47, $0.48, $0.63, & $1.91."

For an analyst ratings summary and ratings history on Urban Outfitters, Inc. click here. For more ratings news on Urban Outfitters, Inc. click here.

Shares of Urban Outfitters, Inc. closed at $27.21 yesterday.

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