“Key pieces of the URBN story look largely intact — UO comp momentum, GM recapture, inventory discipline, and tight expense control — but appear priced in at current levels,” analyst Kimberly Greenberger wrote in a note.
That said, the analyst noted that
However, Greenberger expects 5 percent 2016–2019 sales CAGR, less than half the growth Urban Outfitters saw in 2011–2014, with EPS growing 9 percent versus 13 percent in 2011–2014.
The analyst has a price target of $39 (up from $36), with a bull case target of $50 and bear case scenario of $22.
Urban Outfitters will release its third quarter numbers on November 22. Greenberger projects EPS of $0.41 versus Street’s $0.44. The analyst models -0.1 percent comp (vs. Street +1.8 percent), and 3.7 percent total sales growth versus Street’s 5.3 percent.
At last check, shares of Urban Outfitters were down 0.89 percent to $38.77.
|Nov 2016||Morgan Stanley||Downgrades||Overweight||Equal-Weight|
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