Urban Outfitters Gets a Hold Rating from Oppenheimer

In a report released yesterday, Anna Andreeva from Oppenheimer reiterated a Hold rating on Urban Outfitters (NASDAQ: URBN). The company’s shares closed yesterday at $41.21, close to its 52-week high of $43.18.

Andreeva wrote:

“So far in 2Q18, URBN’s comps are running in low-double digit range, with each division seeing acceleration (Urban brand rebounded the most) as new fashion trends are driving demand inflection (bottoms & separates working across the portfolio) at better profitability. Comparisons are still easy through year-end; higher occupancy limits upside to 2Q18 gross margins, plus Anthro plans to pull back on steep promotional activity (especially in June); Anthro’s IMU’s should be flatter and turn favorable again in 2H18 as own brand penetration grows more in line with historical levels. Net/net, we think EBIT margins sub-8% last year are under-earning and estimates are heading higher; waiting for better consistency to become more constructive.”

According to TipRanks.com, Andreeva is a 4-star analyst with an average return of 5.6% and a 51.4% success rate. Andreeva covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, Children’s Place, and Foot Locker Inc.

Currently, the analyst consensus on Urban Outfitters is Moderate Buy and the average price target is $41, representing a -0.5% downside.

In a report issued on May 16, MKM Partners also upgraded the stock to Hold with a $41 price target.

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Based on Urban Outfitters’ latest earnings release for the quarter ending January 31, the company reported a quarterly net profit of $1.32 million. In comparison, last year the company had a net profit of $11.94 million.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Harry Cherken, a Director at URBN bought 20,000 shares for a total of $609,800.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Urban Outfitters, Inc. engages in the operation of retail clothing stores and sale of general merchandise. It operates through the Retail and Wholesale segments.