Wedbush Remains Neutral on Urban Outfitters (URBN) Saying 'Anthro Slowdown Clouds Near-Term Outlook'
Wedbush maintains a Neutral rating on Urban Outfitters, Inc. (NASDAQ: URBN), and lowered the price target to $34.00 (from $44.00), following 1Q results. Anthro deceleration is clouding the near-term outlook says Analyst Morry Brown.
Brown commented on URBN, saying, "Fears of a top-line slowdown at Anthropologie have long been the key risk for URBN shares, particularly as the UO division began to turn the corner during Holiday. However, the swiftness of the slowdown in 1Q15 comps at Anthro caught most investors off guard. Despite a rebound in May (driven by fundamental improvement, or a shift in catalog timing and higher Mother’s Day promo?), we expect concern over continued softness at Anthro is likely to remain an overhang on the company’s valuation in the near term. Despite seeing constructive signs of traction at the UO division, we see little reason to move off the sidelines given the unknowns associated with near-term trends at Anthropologie."
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Shares of Urban Outfitters, Inc. closed at $40.72 yesterday.