UBS raises Urban Outfitters price target to $54, keeps neutral rating

Published 13/05/2025, 15:40
UBS raises Urban Outfitters price target to $54, keeps neutral rating

On Tuesday, UBS analyst Jay Sole increased the price target for Urban Outfitters, Inc. (NASDAQ:URBN) to $54.00, up from the previous target of $45.00, while maintaining a Neutral rating on the company’s shares. The revision reflects positive sales trends observed for Urban Outfitters in the first and second quarter to date. According to InvestingPro data, the stock has shown remarkable momentum with a 10.5% gain in the past week, trading near its 52-week high of $61.16.

Sole’s assessment is based on the company’s solid sales performance, with an anticipated revenue growth of 8.0% for the first quarter, slightly above the Street’s expectation of 7.5%. This aligns with the company’s current revenue growth trend of 7.7% over the last twelve months. The analyst also predicts a marginal earnings per share (EPS) beat by 2 cents for the same period. Despite these positive indicators, Sole suggests that the market likely shares this optimistic outlook, implying that the upcoming first-quarter report may not significantly alter analysts’ estimates or affect the stock’s current P/E ratio of 13.7x substantially.

The report indicates a balanced view of potential risks and rewards for Urban Outfitters’ earnings forecast. It points out that both upside and downside scenarios exist, but neither is expected to dominate. The options market seems to align with this perspective, pricing in an approximate 8.5% stock price fluctuation in response to the earnings report, which is consistent with the historical average movement for the company around such events.

UBS’s revised price target and maintained rating come as Urban Outfitters prepares to release its first-quarter financial results. The company’s performance during this period seems to have met with a cautiously optimistic reception from market analysts, as reflected in Sole’s comments. The stock’s future movements will likely depend on Urban Outfitters’ ability to sustain the positive sales trends noted by UBS and other market watchers.

In other recent news, Urban Outfitters Inc. reported record fourth-quarter sales of $1.6 billion, marking a 9% year-over-year increase. The company’s earnings per share (EPS) of $1.04 also exceeded forecasts, which were set at $0.94. This strong performance has led to a positive outlook for the company’s future, with plans to open 58 new stores and close 19 in fiscal 2026. Citi analyst Paul Lejuez has raised the price target for Urban Outfitters stock to $65, maintaining a Buy rating, citing the company’s robust gross margin improvements and strong brand performance. Telsey Advisory Group also adjusted its price target to $59, following better-than-expected holiday sales and improved sales trends in the Urban Outfitters brand. UBS, however, maintained a Neutral rating with a $60 price target, noting macroeconomic concerns that could affect future earnings potential. Urban Outfitters’ recent financial disclosure indicates that the company has achieved its most profitable year, with full-year revenue reaching $5.6 billion, an 8% growth from the previous year. The company’s strategic focus on expanding product lines and improving store productivity is expected to support continued growth.

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

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