Urban Outfitters Received its Third Buy in a Row

By Austin Angelo

After Wunderlich and Citigroup assigned a Buy rating to Urban Outfitters in the last month, the company received another Buy, this time from Jefferies. Analyst Randal Konik reiterated a Buy rating on Urban Outfitters (NASDAQ: URBN) today and set a price target of $45. The company’s shares closed yesterday at $39.01, close to its 52-week high of $40.80.

Konik noted:

“URBN’s 3Q miss was largely driven by weakness in apparel at Anthro. However, we remain encouraged by the momentum at UO, bucking the industry trend, with higher store traffic.”

According to TipRanks.com, Konik is a 4-star analyst with an average return of 1.9% and a 49.1% success rate. Konik covers the Services sector, focusing on stocks such as Eros International, Abercrombie Fitch, and Acushnet Holdings.

Currently, the analyst consensus on Urban Outfitters is Moderate Buy and the average price target is $39.50, representing a 1.3% upside.

In a report issued on November 10, Wunderlich also upgraded the stock to Buy with a $40 price target.

Based on Urban Outfitters’ latest earnings report for the quarter ending July 31, the company posted quarterly revenue of $891 million and quarterly net profit of $76.92 million. In comparison, last year the company earned revenue of $825 million and had a net profit of $51.99 million.

Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is neutral on the stock. Most recently, in August 2016, Frank Conforti, the Chief Financial Officer of URBN sold 4,000 shares for a total of $149,680.

Urban Outfitters, Inc. engages in the operation of retail clothing stores. It operates through the following segments: Retail and Wholesale. The Retail segment offers merchandise directly through stores, catalogues, call centers, & websites, and consists of the brands Urban Outfitters, Anthropologie, Free People, Terrain, and Bhldn. The Wholesale segment designs, develops, and distributes women’s casual wear under the Free People brand. The company was founded by Richard A. Hayne and Scott A. Belair in 1970 and is headquartered at Philadelphia, PA.