UPDATE: J.P. Morgan Lowering Price Target On Urban Outfitters

J.P. Morgan Chase & Co. is out with a research report on Urban Outfitters URBN and is lowering its price target to to $33 from $36, but is keeping its Overweight rating on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "URBN reported 2Q11 EPS of $0.35 versus the Street and our estimates of $0.32. However, all eyes went to sales commentary on the conference call noting a deceleration at Anthropologie during the last week of July with trends in the ten days prior to the earnings announcement running down in the mid-single-digit range. The company attributed this largely to the uncertainty surrounding the consumer and they guided 3Q11 margins to approximately 38% of sales, a similar level to the reported 2Q11 rate, as we believe they opted to take a more conservative view on markdowns and occupancy deleverage at the Anthro concept." Shares of URBN lost 62 cents yesterday to close at $26.41.