Piper Jaffray analyst Neely J.N. Tamminga bumped her price target on Urban Outfitters, Inc. (NASDAQ: URBN) to $42.00 (from $36.00) following results but maintained a Neutral rating.

Tamminga commented, "We are adjusting our estimates on the heels of URBN's solid FQ2 results in which Anthropologie comps came in slightly better than expected (2% vs. our estimate of 1%) and core UO comps continue to show improvement at (4% vs. our estimate of 5%). Most encouraging to us, gross margin beat our estimate for FQ2 (36.7% vs. 36.0%) and management indicated on the call that the new core UO merchandise continues to show initial markup (IMU) improvement. Too, management expects gross margin expansion in FQ3 and 2H."

She added, "We are encouraged to see that markdown activity is abating and, more importantly, the new core UO product flows are resonating with customers. Longerterm, recall management believes they can reach a goal of doubling revenues by 2020, which would result in 10%+ compound annual growth, driven by their ability to expand both existing and new products and services across all brands and channels."

The firm trimmed FY 2016 EPS from $1.92 to $1.91 and ups FY 2017 EPS from $2.38 to $2.43.

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 $32.23 yesterday.