Urban Outfitters: Analysts’ Expectations before Q2 2019

Rating synopsis

Prior to the upcoming results for the second fiscal quarter of 2019, most of the analysts covering Urban Outfitters (URBN) stock have maintained a “hold” rating. As of August 14, of the 22 analysts covering the stock, 68% recommended a “hold,” 27% recommended a “buy,” and 5% recommended a “sell.”

The target price hasn’t been revised in the past 30 days. On August 14, Baird slashed the rating to “neutral” from “outperform” for Urban Outfitters stock and maintained the target price of $53.00. The 12-month average target price for Urban Outfitters stock is $47.56, which reflects a 2.4% downside based on its target price on August 14.

Urban Outfitters: Analysts’ Expectations before Q2 2019

For the second fiscal quarter of 2019, analysts expect the net sales to grow 12.2%, while the adjusted EPS is expected to increase 75%.

Urban Outfitters is investing in digital marketing. The company is focused on improving customers’ shopping experience. Urban Outfitters is expanding its brands’ international footprint through store openings and the direct-to-customer channel. The company is also expanding its wholesale business overseas.

On Urban Outfitters’ first fiscal quarter of 2019 earnings conference call, CEO Richard Hayne stated that the company’s strong execution and growth conducive retail environment, given the jobs and tax cuts, led to a better-than-anticipated performance.

Analysts rate peers as “hold” 

For Abercrombie & Fitch (ANF), out of the 16 analysts covering the stock, 44% recommended a “hold,” while 25% recommended a “buy.” The 12-month average target price for Abercrombie & Fitch stock is $23.00, which reflects a 21.4% downside based on its target price on August 14.

Of the 18 analysts covering American Eagle Outfitters (AEO), 50% recommended a “hold,” while 44% recommended a “buy.” The 12-month average target price for American Eagle Outfitters stock is $24.88, which reflects an 11.2% downside based on its target price on August 14.

Of the 27 analysts covering L Brands (LB), 56% recommended a “hold,” while 26% recommended a “buy.” The 12-month average target price for L Brands stock is $36.14, which reflects a 10.5% upside based on its target price on August 14.