Wells Fargo Starts Urban Outfitters (URBN) at Market Perform; Differentiated Stores And Merchandising Drive Strong Sales, But Turnarounds Take Time

Wells Fargo initiates coverage on Urban Outfitters, Inc. (NASDAQ: URBN) with a Market Perform. PT range $25-$27.

Wells analyst says, "We believe that URBN has many of the characteristics investors look for in a specialty retailer, including differentiated store concepts, square footage growth opportunities, and high profit margin. We believe URBN is on track to deliver a five-year compound annual growth rate (CAGR) of midteens for sales and earnings. However, recent fashion misses have caused downward earnings revisions for the past few quarters, and we think the stock could be range-bound until we have better visibility into timing of a turnaround in weak comp trends."

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 $27.40 yesterday.

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