What Analysts Recommend for Urban Outfitters



Ratings summary

The majority of the analysts covering Urban Outfitters (URBN) stock have maintained a “hold” rating. As of February 12, 2018, out of the 24 analysts covering the stock, 50% recommended a “hold,” 38% recommended a “buy,” and 12% recommended a “sell.”

There haven’t been any revisions in price targets so far since the company’s announcement of fiscal 4Q18 sales numbers on February 8, 2018. Urban Outfitters has been working on improving its growth prospects in an environment that’s rapidly changing. The rise of e-commerce has altered the retail landscape. Brick-and-mortar retailers are investing in digital sales channels amid intense competition. Urban Outfitters is no exception. The retailer is now pumping resources into developing its digital sales portal as well as expanding internationally. However, these investments will prove a drag on the margin performance in the near term.

Currently, analysts’ 12-month average target price for Urban Outfitters stock is $34.32, which reflects a 1.8% upside to the stock price as of February 12.

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Peer ratings

Most analysts have recommended a “hold” rating on peers like Abercrombie & Fitch, (ANF), American Eagle Outfitters (AEO), and the Gap (GPS).

Out of 16 analysts covering Abercrombie & Fitch, 50% recommended a “hold” rating. For the Gap, 77.0% of the 26 analysts covering the stock have provided a “hold” rating. 47% of analysts have provided a “hold” rating for American Eagle Outfitters.

Currently, analysts’ target price for Abercrombie & Fitch is $19.69, reflecting a 2.5% downside to the stock price as of February 12. For Gap, the mean target price is $31.26, which indicates a 0.5% downside to the stock price as of February 12. For American Eagle Outfitters, the target price is $18.94, which indicates an 8.9% upside to the stock price as of February 12.


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