Analysts Are Bullish on Top Services Stocks: Urban Outfitters (URBN), Genco Shipping (GNK)


There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on Urban Outfitters (URBN) and Genco Shipping (GNK) with bullish sentiments.

Urban Outfitters (URBN)

In a report released today, Susan Anderson from B.Riley FBR reiterated a Buy rating on Urban Outfitters, with a price target of $40. The company’s shares opened today at $30.72, close to its 52-week low of $29.84.

Anderson wrote:

“Urban Outfitters (URBN) reported 4Q18 EPS of $0.83 vs. B. on SSS of +3% vs. B. Riley FBR/consensus +3.0%, driven by UO (+4%), Anthro (+2%), and FP (+4%). Store comps were positive across brands driven continued +DD digital growth, partially offset by negative retail store sales. Overall wholesale increased +3%. GM expanded +99 bps vs. B. bps/+69 bps, driven by lower markdowns across all brands, improved initial mark-ups, and store occupancy. SG&A margin delevered –13 bps vs. B. bps/+11 bps, primarily driven by increased bonus expense, as each brand achieved its bonus target TY . Management noted that 4QTD they are comping flat/–LSD, which management believes is related to weather and some product issues.”

According to TipRanks.com, Anderson is a 3-star analyst with an average return of 1.7% and a 46.2% success rate. Anderson covers the Services sector, focusing on stocks such as Ascena Retail Group, Abercrombie Fitch, and Children’s Place.

Urban Outfitters has an analyst consensus of Moderate Buy, with a price target consensus of $37.36, which is a 21.6% upside from current levels. In a report released today, Loop Capital Markets also maintained a Buy rating on the stock with a $50 price target.

See today’s analyst top recommended stocks >>

Genco Shipping (GNK)

In a report released today, Liam Burke from B.Riley FBR maintained a Buy rating on Genco Shipping, with a price target of $22. The company’s shares opened today at $8.90, close to its 52-week low of $6.83.

Burke noted:

“Driven by macro headwinds that included lower than expected scrap rates, U.S. and China trade tensions, and supply disruptions out of the dry bulk sector underperformed the market but remains positioned for a healthy rebound with the dry bulk fleet growth growing more slowly in 2019 than overall demand. With a diversified fleet to capture value in both major and minor commodity end markets, we believe that Genco is well positioned, after a slow start to 2019, for steadily increasing time charter equivalents (TCEs) to drive strong operating leverage and free cash flow. The company has redirected its fleet by opportunistically investing in high-return assets while divesting of areas that are not core management’s strategy.”

According to TipRanks.com, Burke is ranked #4253 out of 5228 analysts.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Genco Shipping with a $17.38 average price target, implying a 95.3% upside from current levels. In a report released today, Maxim Group also maintained a Buy rating on the stock with a $20 price target.

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