URBN’s Shares To Come Under Pressure

Analysts at Wedbush Morgan reiterate their "neutral" rating on Urban Outfitters URBN. The target price for URBN is set to $40. URBN posted its Q1 EPS slightly below the estimates “due to higher-than-expected SG&A.” The analysts think that the URBN could be under pressured from “(1) the lack of commentary on current business trends, (2) muted stance towards share repurchase despite 6.8M shares authorized, and (3) higher-than-expected SG&A for incentive comp and growth investments.” The management highlighted that “various initiatives underway to deliver LT square footage growth, increased penetration of DTC, and margin drivers from higher IMU and lower markdowns.” But the analysts still required clarity on “NT earnings upside to drive shares higher.” More Analyst Ratings here