Canaccord Genuity Assigns Buy On Urban Outfitters Shares, $47 PT


In a research report issued yesterday, Canaccord Genuity analyst Laura Champine assigned a Buy rating on Urban Outfitters (NASDAQ:URBN) with a price target of $47.00.

Champine wrote, “We are lowering our consolidated Q3 SSS forecast by 240bps to – 3% on top of +7% as the negative sales trends URBN reported in early September have persisted QTD. Management commented at its analyst day on September 23 that full-price selling was healthy. We believe the sales shortfall is due to lighter inventories rather than product misses. We are seeing better fashion in stores, and we continue to expect a stronger assortment for the holidays. Given the softer Q3 sales, we are lowering our EPS estimate by $0.04 to $0.46 versus prior consensus of $0.50. This includes $0.05 of yr./yr. benefit related to the 14MM shares repurchased in H1. Our estimate reflects a 10% yr./yr. decline in net income. We continue to expect a sales recovery, but it is clearly moving at a slower pace than we had anticipated.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Laura Champine has a total average return of 1.1% and a 41.9% success rate. Champine has an 16.8% average return when recommending URBN, and is ranked #1538 out of 3336 analysts.

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