Brean Capital Reiterates Buy Following Urban Outfitters' (URBN) Better-Than-Expected 4Q
Brean Capital reiterated a Buy rating on Urban Outfitters, Inc. (NASDAQ: URBN), and raised the price target to $35.00 (from $32.00), following the company's 4Q earnings report. URBN reported earnings of $0.61, beating the consensus estimate of $0.56. The beat was due to better-than-expected improvement in GM, and lower share count with 4.3m shares repurchased/retired during the quarter. Total Q4 sales were $1 billion, flat to last year.
Analyst Liz Pierce commented, "Although not the results we had originally expected, URBN’s year ended better than we expected and even though store comps remain in negative territory, we believe there are several encouraging signs in terms of top-line and bottom-line growth. Moreover, we continue to believe with its 3 unique brands, considerable top-line growth potential, a strong balance sheet and its omni-channel focus, URBN remains a Best of Breed retailer. Additionally, we are encouraged by the full price sales and margin improvement at UO and the traction that Anthro is getting in dresses and when combined with lean inventory levels, should fund further margin expansion. Accordingly, we maintain our Buy rating and we are raising our TP to $35 from $32, which is based on a multiple of 17x our FY17 EPS estimate of $2.06 and a 1.1x PEG ratio."
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 $28.16 yesterday.