Citi Reiterates Hold and PT of $31 on Urban Outfitters (URBN)

Citi reiterated its Hold rating and price target of $31 on Urban Outfitters URBN. In a research report published today, Citi stressed that the key quarter for Urban's long term performance will be Q3 2011. In the report, Citi states, "The key test for URBN shares comes in 3Q11, in our view, which brings the dual challenge to fix the Urban division on a tight time frame and manage Anthropologie through a higher cost environment. The recovery out of the last fashion shift would suggest a longer period of margin declines and the absence of a clear fashion direction adds to our concern. Consensus remains high for the year and our $1.54 estimate could prove optimistic should sales fail to recover. As a result, we remain comfortable with our Hold rating and $31 price target." In Monday's trading, Urban added 0.16% to its value to close the day at $31.43.