UPDATE: Stifel Reiterates On Urban Outfitters Following Q3 EPS Report

In a report published Tuesday, Stifel analyst Richard Jaffe reiterated a Buy rating on Urban Outfitters, Inc. (NASDAQ: URBN), but lowered the price target from $42.00 to $38.00.

In the report, Stifel noted, “URBN reported 3Q EPS of $0.35, $0.06 below consensus, $0.07 below our estimate and a 26% decrease vs. $0.47 LY as weakness at the Urban Outfitters brand stores offset strength at direct, Anthropologie and Free People. The miss versus our estimate was driven by: $0.04/share of increased marketing and technology spend, $0.02/share of higher markdowns and $0.02/share of higher taxes compared to our estimate. Given the significant miss, we believe the stock will trade down on the news. We would be buyers of the stock on weakness as we remain favorable regarding the long-term outlook of the company. We reiterate our Buy rating.”

Urban Outfitters closed on Monday at $30.83.