Wolfe Research Starts Urban Outfitters, Inc. (URBN) at Peerperform

Wolfe Research initiates coverage on Urban Outfitters, Inc. (NASDAQ: URBN) with a Peerperform rating and a price target of $34.00.

Analyst Adrienne Yih Tennant commented, " Tale of Two Brands. We are torn between URBN’s two core brands: Urban Outfitters (“UO”) is coming off of what we estimate to be low-single digit operating margins, while Anthropologie is coming off of peak margins that we estimate to be just under 20% operating margins. We calculate that mean gross margins for both brands is around 37%-38% and that UO has about 1000 bps of recovery opportunity to mean revert, while Anthropologie has about 400 bps of margin erosion to mean revert."

For an analyst ratings summary and ratings history on Urban Outfitters, Inc. click here. For more ratings news on Urban Outfitters, Inc. click here.

Shares of Urban Outfitters, Inc. closed at $32.32 yesterday.

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