Deutsche Bank Has $40 Target On Urban Outfitters (URBN)

Deutsche Bank is lowering its price target to $40 from $43, but is keeping its Buy rating on shares of Urban Outfitters URBN after the company reported strong earnings yesterday after the bell. In the report Deutsche Bank writes, "Headline $0.42 EPS exceeded $0.39 consensus (and our $0.40), even after adjusting for $0.01-$0.02 benefit from a perhaps lower than expected tax rate. 7% comps exceed ~6% forecasts (traffic & units up, AUR flat), with GM up on lower markdown/occupancy rates and better buying. SG&A levered and inventories remain well controlled vs. sales. Maintain Buy as URBN comps, margins, and product continue to differentiate from competitors. Trim PT to $40 from $43, based on 20x our FY11 EPS. Downside risk from an increasingly global strategy." Shares of Urban Outfitters are up 92‎ cents to $32.38 so far in Tuesday trade.