Jefferies Reaffirms Negative Sediment on Urban Outfitters (URBN) Following CEO Departure
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Price: $39.36 +2.07%
Rating Summary:
11 Buy, 27 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
11 Buy, 27 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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Jefferies is reaffirming its Underperform rating and $17 price target on shares of Urban Outfitters, Inc. (NASDAQ: URBN) following the announcement that the company's chief executive officer, Glen Senk, will be resigning.
Urban Outfitters remains on Jefferies conviction sell list as the bullish thesis on the stock just went out the window the the departure announcement. The firm notes retail stories are often very dependent on the management team's talent.
Jefferies highlights there is a large level of uncertainty with investors and Urban Outfitters following a number of management changes under Mr. Senk over the past few quarters. The direction of the company is what is mostly uncertain.
An analyst at Jefferies comments, "We see continued earnings risk here from a high level of markdowns and continued fashion issues. Further, we believe the URBN domestic growth story is becoming more mature at its two key concepts and view the international growth strategy and global nature of the brand as relatively unproven. And, with the company's b/s near its minimum cash cushion, buybacks are not likely a lever 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.
Urban Outfitters remains on Jefferies conviction sell list as the bullish thesis on the stock just went out the window the the departure announcement. The firm notes retail stories are often very dependent on the management team's talent.
Jefferies highlights there is a large level of uncertainty with investors and Urban Outfitters following a number of management changes under Mr. Senk over the past few quarters. The direction of the company is what is mostly uncertain.
An analyst at Jefferies comments, "We see continued earnings risk here from a high level of markdowns and continued fashion issues. Further, we believe the URBN domestic growth story is becoming more mature at its two key concepts and view the international growth strategy and global nature of the brand as relatively unproven. And, with the company's b/s near its minimum cash cushion, buybacks are not likely a lever 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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