Oppenheimer Cuts Urban Outfitters Price Target Following Earnings


In a research report issued today, Oppenheimer analyst Anna Andreeva downgraded Urban Outfitters (NASDAQ:URBN) to Market Perform rating with a price target of $35, following the company’s biggest quarterly miss in recent history (and below negative pre-announcement on 10/16).

Andreeva noted, “Earnings estimates on URBN continue to come down (’14 est. down 30% since start of year), with $0.35 for 3Q14 the biggest quarterly miss in recent history (and below negative pre-announcement on 10/16). Anthro, while slower, remains resilient (twoyear comp stack maintained, one of a few apparel retailers with margins up); UO recovery is taking longer (took four quarters to fix during ’11 fashion miss), issues likely more structural than company anticipated.

The analyst continued, “While turnarounds in retail usually take longer, UO is starting to lap significantly softer results (Jan comps down 20% LY, comps down DD 1H14), Anthro’s stack eases. Our $0.53 for 4Q14E is predicated on comps flat to up LSD at UO (acceleration from current levels), which may be optimistic given environment.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anna Andreeva has a total average return of -0.6% and a 42.9% success rate. Andreeva has a 13.0% average return when recommending URBN, and is ranked #2527 out of 3377 analysts.

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