Urban Outffitters (URBN) posted decent same-store results on Monday, and remained in favor with analysts in the immediate aftermath. Today, sentiment shifted. URBN was downgraded Wednesday by S&P Capital IQ analyst Jason Aesada, who lowered the company’s rating from Hold to Sell and cut his price target to $24 from $30 on valuation.
�We see fashion forward styles resonating with customers at the company�s Free People and Urban Outfitters divisions, which bodes well for sales and margins. However, we think the company’s Anthropologie division continues to miss the mark with its core demographic. Given time needed to correct what we think is an over-emphasis on eclectic fashions and a weak value proposition, we are no longer counting on a turnaround at Anthropologie this fall,� wrote Aesada.
Shares fell 4.9% on Wednesday. Other retailers fell, but nearly as much.
– Grace L. Williams
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