- Urban Outfitters (NASDAQ:URBN) is being credit by Wells Fargo for the beginning of a turnaround after the retailer's Q4 earnings report and guidance update, although some risk is said to remain.
- "A clear recovery play beginning to gain momentum. Management appears confident that their portfolio of brands will be a beneficiary of 2021's going-out dynamics, with a lack of clarity on timing seemingly becoming less important. In the meantime, delivery expenses and marketing costs are weighing on URBN's profitability (sales better, margins worse). We believe there remains significant risk around URBN's execution of taking advantage of recovery dynamics, and reiterate our EW rating."
- The firm bumps its FY22 EPS estimate to $1.80 from $1.79 and expects FY23 EPS of $2.16 vs. $2.24 prior. The price target goes to $32 from $28, based on 14X to 15x the FY23 EPS estimate.
- Shares of Urban Outfitters are down 2.87% in premarket trading after the mixed Q4 earnings report.