Urban Outfitters’ Strong Financial Performance and Strategic Initiatives Drive Buy Rating

In a report released yesterday, Paul Lejuez from Citi maintained a Buy rating on Urban Outfitters (URBN – Research Report), with a price target of $75.00.

Paul Lejuez has given his Buy rating due to a combination of factors including Urban Outfitters’ recent financial performance and strategic initiatives. The company reported a significant earnings per share (EPS) beat in the first quarter, with $1.16 compared to the consensus of $0.83, driven by stronger gross margins and positive comparable sales across its brands. Urban Outfitters’ brand momentum is evident with all three brands showing positive comps, and the UO brand turning positive for the first time since early 2022, indicating a successful recovery and traction with new customers.
Moreover, management’s guidance for the second quarter suggests continued sales growth and earnings potential, with expected EPS surpassing consensus estimates. The company’s strategic stock repurchase of $150 million, the largest since 2019, further reflects confidence in its financial health. With these positive indicators and a favorable risk/reward profile, Lejuez maintains a target price of $75, implying a strong potential for future growth and an attractive investment opportunity.

In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $80.00 price target.

Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of URBN in relation to earlier this year.