Deutsche Bank Starts Urban Outfitters, Inc. (URBN) at Hold

Deutsche Bank initiated coverage on Urban Outfitters, Inc. (NASDAQ: URBN) with a Hold rating and a price target of $33.00.

Analyst Paul Trussell said, "In our view, URBN has strong brands still capable of growth in apparel as well as numerous categories of expansion being chased (home, intimates, beauty, shoes, etc.). With comps now improved, and easy compares ahead, margin recovery and buyback support should lead to a consistent +DD EPS pace. We initiate with a Hold rating and $33 PT, however, due to 3 concerns: (1) traffic remains under pressure (ASP has been the comp driver) making us question the need for additional square footage; (2) investments needed for IT, store support, and fulfillment seem meaningful; and (3) the stock has already bounced back to a mid-teens multiple (up 37.5% YTD vs. S&P up 2.3%)."

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 $30.72 yesterday.

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