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Investing.com - BofA Securities raised its price target on Urban Outfitters, Inc. (NASDAQ:URBN) to $93.00 from $90.00 on Thursday, while maintaining a Buy rating on the stock. The retailer, currently valued at $7 billion, is trading near its 52-week high of $80.71, having delivered an impressive 113% return over the past year.
The price target increase follows Urban Outfitters’ second-quarter earnings report, which showed earnings per share of $1.58, exceeding BofA’s estimate of $1.39 and consensus estimates of $1.45. The stronger performance was driven by better-than-expected sales and gross margin improvements. According to InvestingPro data, the company maintains a healthy gross margin of 35.26% and has achieved a perfect Piotroski Score of 9, indicating strong financial health. Additional financial insights and 10+ more ProTips are available with an InvestingPro subscription.
All of the company’s retail brands delivered positive comparable sales growth in the quarter, with Urban Outfitters up 4%, Anthropologie up 6%, and Free People up 7%. The company’s clothing rental subscription service, Nuuly, saw sales growth of 53% during the period.
BofA raised its fiscal 2026 and 2027 earnings estimates by 5% and 1% respectively, to $5.17 and $5.41 per share, citing the earnings beat and expectations for stronger gross margins in fiscal 2026.
The new $93 price target is based on 10 times the firm’s fiscal 2027 estimated EV/EBITDA (enterprise value to earnings before interest, taxes, depreciation, and amortization).
In other recent news, Urban Outfitters Inc. reported strong financial results for the second quarter of 2025, exceeding market expectations. The company announced earnings per share of $1.58, which surpassed the projected $1.48, delivering a 6.76% surprise to analysts. Urban Outfitters’ revenue reached $1.5 billion, slightly above the anticipated $1.48 billion, and reflected an 11% increase from the previous year. These results highlight the company’s positive financial performance during the quarter.
While the earnings report was well-received, further details about potential mergers or acquisitions were not discussed in the recent updates. Analyst firms have not indicated any upgrades or downgrades following the earnings announcement, maintaining a neutral stance. The focus remains on how Urban Outfitters will sustain this growth trajectory in the upcoming quarters. Investors will be keenly observing any strategic moves the company might announce in the near future.
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