Jefferies Reiterates an 'Underperform' on Urban Outfitters, Inc. (URBN); CFO Taking Off Now
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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 reiterates an 'Underperform' on Urban Outfitters, Inc. (NASDAQ: URBN) price target of $17.00.
Analyst, Randal J. Konik, said, "URBN announced that its CFO, Eric Artz, is stepping down from his position and will be replaced by the company's Chief Accounting Officer. This unexpected news comes after the sudden resignation of URBN's CEO in January. Bottom line, this latest mgmt change only makes us more cautious around this stock which faces structural issues such as slowing growth, rising competition and declining returns."
"We view current valuation as very expensive (24x FY'13 EPS and 9.5x EV/EBITDA) given eroding returns, slowing growth, and an uneven earnings picture. And, with the company's balance sheet near its minimum cash cushion, buybacks are not likely a lever in the near term. 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 $28.51 yesterday.
Analyst, Randal J. Konik, said, "URBN announced that its CFO, Eric Artz, is stepping down from his position and will be replaced by the company's Chief Accounting Officer. This unexpected news comes after the sudden resignation of URBN's CEO in January. Bottom line, this latest mgmt change only makes us more cautious around this stock which faces structural issues such as slowing growth, rising competition and declining returns."
"We view current valuation as very expensive (24x FY'13 EPS and 9.5x EV/EBITDA) given eroding returns, slowing growth, and an uneven earnings picture. And, with the company's balance sheet near its minimum cash cushion, buybacks are not likely a lever in the near term. 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 $28.51 yesterday.
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