The S&P was down 1.94 points, or 0.14%, to 1,417.10.
Shares of Urban Outfitters rose 4.84% to $30.97. Citi analysts upgraded the stock to neutral from sell on Tuesday.
"There are still a number of issues to be resolved at URBN as the company seeks to reign in markdown rates and adjust its mix at Anthropologie," Citi analysts said in the report Tuesday. "Yet the 10K filed yesterday after the close revealed that 1Q12 rests on solid footing thus far, with the consolidated comp including direct trending toward the high end of the +LSD range. March had a number of benefits, including weather and a favorable calendar shift, and there is still room for a softer April (our 1Q assumes a +1% comp). But that should come without downward revisions to estimates given lean inventory. That shifts the earnings bias from negative and we're moving to Neutral here."Urban Outfitters has an estimated price-to-earnings ratio for next year of 16.97 times; the average for apparel retailers is 17.47. For comparison, both Abercrombie & Fitch (ANF) and Express (EXPR) have lower forward P/Es of 11.67 and 11.7, respectively. Sixteen of the 35 analysts who cover Urban Outfitters rated it buy. Fourteen analysts rated the stock hold and five gave it a sell rating. TheStreet Ratings gives Urban Outfitters a B- grade with a buy rating and $33.71 price target. The stock has risen 12.34% year to date.
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