Charter Communications earnings missed by $0.40, revenue was in line with estimates
On Thursday, Morgan Stanley (NYSE:MS) raised its price target on Urban Outfitters, Inc. (NASDAQ:URBN) shares from $62.00 to $77.00, while maintaining an Overweight rating. The adjustment follows the company’s first-quarter performance, which bolstered the firm’s positive stance on the retailer’s stock. According to InvestingPro data, four analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s outlook. The stock is currently trading below its InvestingPro Fair Value, indicating potential upside opportunity.
The financial institution’s analysis highlighted several factors contributing to the optimistic outlook. Urban Outfitters is recognized as one of the few companies in the Specialty Retail sector with a visible trajectory for robust revenue growth and operating margin (OM) expansion by fiscal year 2026, as evidenced by the first-quarter results. The company’s Urban Outfitters banner, in particular, demonstrated a strong turnaround this quarter, which was a key point in the firm’s assessment. The company’s revenue growth of 7.71% and healthy gross profit margin of 34.79% support this positive outlook.
Additionally, Urban Outfitters is considered to have better protection against tariffs and recessionary pressures compared to its peers, potentially offering a more stable investment during uncertain economic times. The firm also anticipates that the retailer can achieve a higher valuation over the next twelve months (NTM) due to ongoing positive earnings per share (EPS) revisions. This expectation comes despite the company’s guidance, which may appear elevated.
The analyst’s statement underscored the justification for Urban Outfitters’ current valuation premium over its peers, which implies a mid-teens price-to-earnings (P/E) ratio compared to the low double-digit average of Specialty Retail peers. The firm concluded with increased confidence in its Overweight thesis and Urban Outfitters’ trajectory for continued positive revisions in the near term.
In other recent news, Urban Outfitters Inc. reported impressive first-quarter earnings for fiscal year 2026, with earnings per share (EPS) of $1.16, surpassing analyst expectations of $0.83. The company’s revenue reached $1.33 billion, exceeding forecasts of $1.29 billion, marking an 11% year-over-year growth. BofA Securities responded by raising its price target for Urban Outfitters to $80, maintaining a Buy rating, citing the positive performance across the company’s brands, including a 60% sales increase in the Nuuly subscription service. Meanwhile, JPMorgan upgraded Urban Outfitters’ stock rating from Neutral to Overweight, despite lowering the price target to $56.90, following the company’s robust earnings report. Jefferies also adjusted its price target, increasing it to $50, while keeping an Underperform rating due to concerns over North American market challenges. Urban Outfitters’ strong financial performance and positive outlook have led analysts to revise their forecasts, with expectations of continued sales growth and margin improvements. The company’s management anticipates high-single-digit percentage sales growth for the second quarter of 2025, along with improvements in gross margin and same-store sales.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.