Jefferies Maintains an 'Underperform' on Urban Outfitters, Inc. (URBN); Still Don't Believe; Avoid
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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 maintains an 'Underperform' on Urban Outfitters, Inc. (NASDAQ: URBN) price target of $17.00.
Analyst, Randal J. Konik, said, "4Q results did nothing to change our cautious view on this name. We believe the operating model is inconsistent, margins remain under pressure, and the business is not turning. Clean inventories and slightly better full price selling are not a cure-all. We think numbers will remain challenged and that shares are too expensive; reiterate UP rating. We see much better value in true global growth names like Guess (NYSE: GES) and Abercrombie & Fitch (NYSE: ANF) (both Buy-rated)."
"We are shocked that the market has re-bid this stock up past levels prior to the CEO's resignation (in whom the market had seemed to put considerable faith). And, we question the sustainability of the current lofty valuation (25x FY'13 EPS and 10x EV/EBITDA) given eroding returns, slowing growth, and an uneven earnings picture. We would be sellers and see considerable downside risk."
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 $29.51 yesterday.
Analyst, Randal J. Konik, said, "4Q results did nothing to change our cautious view on this name. We believe the operating model is inconsistent, margins remain under pressure, and the business is not turning. Clean inventories and slightly better full price selling are not a cure-all. We think numbers will remain challenged and that shares are too expensive; reiterate UP rating. We see much better value in true global growth names like Guess (NYSE: GES) and Abercrombie & Fitch (NYSE: ANF) (both Buy-rated)."
"We are shocked that the market has re-bid this stock up past levels prior to the CEO's resignation (in whom the market had seemed to put considerable faith). And, we question the sustainability of the current lofty valuation (25x FY'13 EPS and 10x EV/EBITDA) given eroding returns, slowing growth, and an uneven earnings picture. We would be sellers and see considerable downside risk."
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 $29.51 yesterday.
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