Citi ups Urban Outfitters target, opens ‘positive catalyst watch’

Citi raised the firm’s price target on Urban Outfitters (URBN) to $42 from $39 and keeps a Neutral rating on the shares. The firm expects a Q3 earnings beat when Urban reports on November 26, driven by stronger than consensus gross margin. Warmer weather headwinds are transitory while Free People and Anthropologies comps are holding up relatively well, the analyst tells investors in a research note. Citi expects the company to take a conservative approach to Q4 guidance, but says consumers to show up for holiday. It believes the stock’s risk/reward is favorable into earnings opened a “30-day positive catalyst watch.”