Urban Outfitters, Inc. (URBN) Management Meeting Implies Upside Unlikely - UBS

UBS analyst Jay Sole reiterated a Neutral rating and $32.00 price target on Urban Outfitters, Inc. (NASDAQ: URBN) after meeting with management and walking away feeling shares are fairly priced.

The analyst stated "We doubt URBN will deliver big growth in CY22 or beat sell-side consensus EPS estimates and we think companies need to do both to outperform in 2022 (link). The main reasons URBN likely delivers low growth are rising cost inflation and tough merchandise margin compares as the company laps CY21's historically low markdown rates. The stock carries just a 9x FY2 P/E, but we don't see a positive catalyst coming near-term. Plus, the market may resist buying on low valuation since March is rapidly approaching and URBN must lap last year's US fiscal stimulus."

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 $28.71 yesterday.

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