FBR & Co. Reiterates Market Perform, Raises PT On Urban Outfitters Following 4Q EPS Beat

In a report published Tuesday, FBR & Co. analyst Susan Anderson reiterated a Market Perform rating on Urban Outfitters, Inc. (NASDAQ: URBN), and raised the price target from $38.00 to $40.00.

In the report, FBR & Co. noted, "URBN reported a 4Q EPS beat of $0.60 versus FBR/consensus of $0.57. Results reflected total comps of +6% (previously reported), gross margin de-leverage of ~–210 bps, and SG&A leverage of ~+10 bps. We were encouraged with current sales trends, with URBN currently comping +MSD 1QTD and UO reg-price store comps slightly positive (though year-ago compares are relatively easy). For 2015, URBN provided an outlook that included +100 bps of GM expansion (including –50 bps related to the transition of its East Coast fulfillment center and FX pressure), +LDD SG&A growth, ~+6% square-footage growth (32 new stores), capex of $150M– $160M, and an FX impact on EPS growth of ~3 points. We are encouraged by potential UO green shoots, the positive '15 outlook, 2H15 margin opportunity, supply chain initiatives, and Anthro/FP continued execution. However, we look for further signs of UO inflection and continued execution beyond easy compares that help to indicate decreased structural pressure or a more attractive entry point."

Urban Outfitters closed on Monday at $39.51.