Urban Outfitters (URBN) PT, Estimates Cut at Janney Capital on Weak Q3
Janney Capital analyst Adrienne Yih-Tennant lowered estimates and her price target on Neutral-rated Urban Outfitters, Inc. (NASDAQ: URBN) to $31.00 (from $32.00) following weak Q3 results with the core brand under pressure.
Yih-Tennant commented, "URBN reported 3Q14 comp of -1% (vs St. -1.2%) & EPS of $0.35 (vs St. $0.41). We remain Neutral on shares of URBN due to: 1) macro issues that have softened consumer demand, 2) slower turn at UO that continues to pressure margins, 3) inventory overhang at UO, which we believe could pressure margins in 4Q14, & 4) medium-to-longer-term ROIC that should be lower as URBN enters a capex investment phase. We believe these issues may cap upside to EPS near term, and the stock may trade rangebound until there is more visibility on the impact of each."
The firm is lowering 4Q14 EPS estimate to $0.55 from $0.59 (versus consensus of $0.62). FY14 and FY15 EPS estimates go to $1.63 from $1.71 (versus consensus of $1.77) and to $1.91 from $1.98 (versus consensus of $2.08), respectively.
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Shares of Urban Outfitters, Inc. closed at $30.83 yesterday.