Jefferies raises Urban Outfitters price target to $46 from $42

Wednesday, shares of Urban Outfitters, Inc. (NASDAQ:URBN), currently trading at $59.60 with a market capitalization of $5.5 billion, remained under scrutiny as Jefferies maintained an Underperform rating while increasing the price target to $46.00, up from the previous $42.00. The adjustment follows a review of the company’s pricing and promotional data for the first quarter, which concluded on April 29, 2025. According to InvestingPro analysis, the stock is currently trading near its 52-week high of $63.21.

The analysis by Jefferies revealed that discount levels across several retailers, including Urban Outfitters, were up by 1.3% year-over-year in the first quarter, a decrease from the 3.0% increase seen in the fourth quarter. At the same time, average selling prices (ASPs) experienced a 0.9% year-over-year decline in the first quarter, an improvement from the 5.9% drop in the previous quarter. The company has shown strong momentum, with a year-to-date return of 11.77% and impressive revenue growth of 7.71% over the last twelve months.

Despite the observed increase in promotional activity and the potential impact of looming tariff headwinds, which have been a focal point for investors, Jefferies suggests there may still be opportunities within the retail sector that is currently facing pressure. The firm’s stance is cautious, and as a result, they have revised estimates and price targets for a selection of retail stocks.

The report from Jefferies indicates a mixed outlook for Urban Outfitters, acknowledging the more promotional environment and the challenges it presents. The firm’s decision to increase the price target is based on the latest data, while still expressing concerns over the broader retail landscape.

Urban Outfitters, known for its eclectic and trendy offerings, operates in a highly competitive retail market, where pricing and promotions are key factors influencing performance. The update from Jefferies provides investors with a snapshot of the company’s current position in the face of industry headwinds and shifting market dynamics. InvestingPro data shows the company maintains strong financial health with a moderate debt level and attractive P/E ratio of 14.12. For deeper insights into URBN’s valuation and 12+ additional ProTips, consider accessing the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Urban Outfitters Inc. has been the subject of various analyst evaluations and company updates. The company recently disclosed its earnings for the fiscal year ending January 31, 2025, providing stakeholders with insights into its financial performance. Analysts have been active in adjusting their price targets for Urban Outfitters, with Citi raising its target to $75 while maintaining a Buy rating. Citi’s analyst anticipates that Urban Outfitters will surpass first-quarter earnings per share expectations, citing strong gross margins.

UBS also revised its price target, increasing it to $54 while maintaining a Neutral rating, reflecting positive sales trends. However, UBS suggests that the market already anticipates these trends, indicating that the upcoming earnings report may not significantly impact analysts’ estimates. Additionally, Telsey Advisory Group raised its price target to $59, following a fourth-quarter performance that exceeded expectations, driven by improved sales and cost leverage.

Despite these positive indicators, UBS maintained its Neutral rating with a $60 target, citing broader economic apprehensions that could affect future earnings surprises. Analysts from these firms have noted the potential for Urban Outfitters’ brands, such as Anthropologie and Free People, to outperform in the current market environment. These developments come as Urban Outfitters prepares to release its first-quarter financial results, with investors keenly observing the company’s ability to sustain its positive sales trends.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.