UPDATE: Wedbush Color On Urban Outfitters PT Increase

Wedbush, which raised its PT on shares of Urban Outfitters Inc. URBN, is providing some color on the stock. “As URBN posts Q1 EPS below Street estimates (despite 4.8M shares buyback completed in Q1) and signals continued product adjustments for both UO and Anthropologie in Q2, we believe the stock could remain range-bound,” Wedbush writes. “With excess inventory to clear at both flagship brands, management guided to greater gross margin contraction than our expectations and brings into question the timing of fashion corrections by H2. In addition, management has indicated continued investment in store openings (reiterated 50-55 TY), new concepts including BEHLDN, and IT systems placing additional pressure on operating margin throughout F11 (noting a necessary ~4% comp for SG&A leverage).” Urban Outfitters closed Monday at $32.29.