UPDATE: Brean Murray Carret Upgrades Urban Outfitters to Hold Post Q2 Beat

Brean Murray Carret raised its rating on Urban Outfitters (NASDAQ: URBN) from Sell to Hold and suspended its previous price target of $23.

Brean Murray Carret said, "We are raising our rating on URBN to Hold (from Sell), and increasing our FY13 and FY14 EPS projections to $1.59 (from $1.35) and $1.87 (From $1.70) after the company registered solid 2Q margin upside and demonstrated that, while we still have issues on top line results, that they are in charge in terms of driving margin upside for the rest of the fiscal year (at least).  Given that the company is facing the easiest comp comparisons of the year (by far) in 3Q and margin gains in 2H should be easier, driven by cheaper cotton and less price cuts, it would be somewhat suicidal to remain in the Sell camp."

Urban Outfitters closed at $31.28 on Monday.