Nomura Securities Maintains a 'Neutral' on Urban Outfitters (URBN); Don't See A Positive N-T Catalyst For The Stock

Nomura Securities maintains a 'Neutral' on Urban Outfitters, Inc. (NASDAQ: URBN) price target of $28.00.

Nomura analyst, Paul Lejuez, said, "After the market close, URBN announced that CEO Glen Senk is resigning. While the company looks for a successor, URBN founder Dick Hayne will act as CEO and Senk will assist in the transition. The stock has traded up 25% in the last three months as investors hoped for an inflection point in Anthropologie sales trends. While the company did report positive Holiday comps, the improvement in sales was very promotionally driven. We believe that if the company is able to get inventory in line, comps will turn negative again. While URBN has certainly had difficult business trends recently, we still believe Senk is one of the best merchants out there. If Glen can’t do it, we wonder who can. URBN is still a good growth story, but the departure of Senk signals that problems at the company are no closer (more likely farther) to being solved. We do not see a positive catalyst for the stock in the near term."

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 $29.41 yesterday.

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