BMO Financial lowers the target price on Urban Outfitters Inc.(URBN:NSD) to $21

STA Research
by: STA Research

BMO Financial maintains Urban Outfitters Inc. with a Market Perform rating and lowers the target price to $21 from $29 on the company’s stock.

Based on the Urban Outfitters Inc stock forecasts from 10 analysts, the average analyst target price for Urban Outfitters Inc is USD 34.67 over the next 12 months. Urban Outfitters Inc’s average analyst rating is 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 17.99Urban Outfitters Inc’s stock price has changed by -23.87% over the past week, -24.00% over the past month and -48.19% over the last year.

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 in 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 on cashflow 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 to buy.

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 capital utilization

The company management has delivered below median return on invested capital 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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