Jefferies Downgrades URBN To Underperform, Lowers PT To $25

Jefferies has downgraded Urban Outfitters Inc. URBN to Underperform from its previous rating of Hold. It has also lowered its price target on the stock from $31 to $25. Both of these are based upon the sudden exit of brand President Stephen Murray. In the report, Jeffries states, “Today's unexpected announcement leads us to further question the leadership direction at the company. Mr. Murray was only with the company for one year and was one of several new senior hires last year. This latest change casts yet another cloud on the stock, especially in light of the decelerating sales and margin trends.” URBN closed yesterday at $31.31