UPDATE: Wedbush Color on Urban Outfitters PT Decrease

Wedbush, which lowered its PT on shares of Urban Outfitters URBN, is providing color on the stock. “We believe the UO and Anthropologie continue to experience choppy sellthroughs and excess inventory, as exemplified by the disappointing business update of –LSD comps, which will likely keep the stock pressured in the NT,” Wedbush writes. “Though we have not altered our H2 DTC growth assumptions, we do believe it is possible the merchandising issues plaguing the stores may contaminate the online business, which saw some slowdown in Q1 with growth of +18.6% vs. +29-42% growth rates reported throughout 2010, another potential concern to consider. With the stock sentiment influenced by the disappointing sales trends and the potential for additional earnings revisions in the horizon, we are staying on the sidelines.” Urban Outfitters closed Wednesday at $28.49.