Urban Outfitters price target raised to $42 from $38 at BMO Capital

BMO Capital analyst Daniel Stroller raised the firm’s price target on Urban Outfitters to $42 from $38 but keeps a Market Perform rating on the shares. The company reported a top- and bottom-line miss, but while its gross margin was ahead of the initial 4Q guide, it fell short of January’s updated forecast, the analyst tells investors in a research note. Urban Outfitters has been able to grow sales via its portfolio of brands, comp growth and measured store expansion to fuel this demand, though the external pressures and the uncertainty surrounding the Urban Outfitters brand turnaround are reasons to remain sidelined, the firm added.