Urban Outfitters (URBN) Price Target Raised to $45 at Goldman Sachs
Goldman Sachs maintained a Buy rating on Urban Outfitters, Inc. (NASDAQ: URBN) and raised its price target to $45.00 (from $43.00). Yesterday Urban Outfitters reported Q2 results.
Analyst Lindsay Drucker Mann said, "The upside versus consensus was driven by a slightly favorable SG&A rate and the repurchase of 3.7mn shares during the quarter. The company does not provide formal EPS guidance but did reiterate its expectations to end the year with 35-40 new stores and for SG&A expenses to grow in the low double digits. The company also reaffirmed its expectations for FY15 capital expenditures to total $215 235mn, primarily related to its new fulfillment center and home office expansion, and for its tax rate to be 35%, reflecting one-time favorable credits. For 3Q15, the company stated that gross margin deleverage could continue, though at a rate better than the 200bps decline seen in the first two quarters of the year."
"We maintain our FY15 EPS projection at $1.96 while we raise our FY16 EPS projection to $2.37 from $2.33 and FY17 to $2.63 from $2.59 based on fewer shares outstanding," she added. "We raise our 6-month price target to $45 from $43, as we roll forward quarters and still apply 19X P/E on our 18-month forward EPS."
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 $36.92 yesterday.