B.Riley FBR Thinks Urban Outfitters’ Stock is Going to Recover

By Austin Angelo

In a report released yesterday, Susan Anderson from B.Riley FBR reiterated a Buy rating on Urban Outfitters (URBNResearch Report), with a price target of $52. The company’s shares opened today at $31.88, close to its 52-week low of $31.20.

Anderson commented:

“After the close on 1/10, Urban Outfitters ( URBN) reported that both net sales and SSS for November and December increased +5% over LY . This indicates that QTD SSS have remained relatively consistent with the +MSD reported for just the month of November. Management noted that the comparable sale growth was driven by robust +DD growth in the digital channel, which more than offset negative sales in retail stores. We believe the consistency of QTD sales should be viewed positively as URBN appears to have successfully mitigated slower sales in the beginning of December. Additionally, the 2-year stack remained consistent with 3Q and a bit higher than 1H18. We will look for further commentary from the company at the upcoming ICR conference around gross margin and expectations going into 2019.”

According to TipRanks.com, Anderson is a 1-star analyst with an average return of -0.4% and a 43.0% success rate. Anderson covers the Services sector, focusing on stocks such as Children’s Place, Foot Locker Inc, and Tailored Brands.

Currently, the analyst consensus on Urban Outfitters is a Hold with an average price target of $43.36, which is a 36.0% upside from current levels. In a report issued on January 9, Morgan Stanley also upgraded the stock to Buy with a $44 price target.

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Urban Outfitters’ market cap is currently $3.5B and has a P/E ratio of 16.84. The company has a Price to Book ratio of 2.40.

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