Urban Outfitters, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Lorraine Hutchinson from Bank of America Securities reiterated a Buy rating on the stock and has a $93.00 price target.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Lorraine Hutchinson’s rating is based on the strong performance of Urban Outfitters’ brands, particularly Free People and Anthropologie, which are among the top-performing apparel brands in the market. The company reported a third-quarter earnings per share that exceeded expectations, driven by robust sales and improved gross margins. All of Urban Outfitters’ brands showed positive growth across various regions, with notable increases in sales for Urban Outfitters, Anthropologie, and Free People, while Nuuly experienced a significant sales surge.
Additionally, Urban Outfitters’ profitability has improved, with a 13% increase in comparable sales, driven by new customer growth and strong performance in key categories like denim and lounge. The company’s management is confident about the upcoming holiday season, with continued sales momentum and increased traffic. Despite ongoing margin pressures from tariffs, Urban Outfitters has strategically implemented price increases in select products and plans to offset tariff impacts through vendor negotiations and changes in sourcing strategies.
Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Nike, Burlington Stores, and Gap Inc. According to TipRanks, Hutchinson has an average return of 3.3% and a 51.81% success rate on recommended stocks.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $71.00 price target.