UBS Cuts Price Target on Urban Outfitters (URBN) to $30; Reiterates Neutral

UBS maintained a Neutral rating on Urban Outfitters, Inc. (NASDAQ: URBN), and cut the price target to $30.00 (from $33.00), as 2Q trends continue to decelerate. URBN lowered 2Q estimates to $0.50 from $0.57, compared to the Street's $0.58 estimate. These changes are to reflect an SSS of -3%, 50 bps of YOY gross margin erosion, and 100 bps of SG&A deleverage.

Analyst Michael Binetti commented, "In its 10Q, URBN commented that QTD 2Q SSS are running –MSD (vs UBSe/Street's +0.2% est) – likely a further deceleration from trends as of 5/18 (when the company indicated that trends were below 1Q's +1% SSS). We estimate that store-only comps are probably running in the –LDD range, which would represent a deceleration vs 1Q of approximately 5-pts and 10-pts, respectively. We note that May was the toughest compare of 2Q with June and July easing slightly."

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 $27.93 yesterday.

You May Also Be Interested In

• JPMorgan Starts Kanzhun Ltd (2076:HK) at Overweight
• Morgan Stanley Upgrades Galp Energia SGPS SA (GALP:LI) (GLPEF) to Overweight
• HSBC Downgrades HK Electric (2638:HK) (HKCVF) to Hold