Analysts rate Urban Outfitters Inc. (URBN:NSD) Strong Buy, Target $38

STA Research
by: STA Research

Analysts rate Urban Outfitters Inc. with a consensus Strong Buy rating and a 12-month average Target Price of $38.27 per share.

Barclays lowers Urban Outfitters to Overweight, Target lowered from $35 to $34.

Based on the Urban Outfitters Inc. stock forecasts from 9 analysts, the average analyst target price Urban Outfitters Inc. is USD 38.27 over the next 12 months. Urban Outfitters Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Urban Outfitters Inc. is Slightly Bearish, which is based on 4 positive signals and 8 negative signals. At the last closing, Urban Outfitters Inc.’s stock price was USD 28.41. Urban Outfitters Inc.’s stock price has changed by +3.07% over the past week, -0.10% over the past month and -20.66% over the last year.

Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, wholesale, and Subscription. The company was founded in 1970 and is based in Philadelphia, Pennsylvania.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to book value

The stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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