Story updated at 10:05 a.m. to reflect market activity.
Urban Outfitters fell 4.5% to $35.84 in morning trading.
The price target decrease comes after the retailer's first quarter results. Analyst Simeon Siegel also cut estimates for Urban Outfitters citing challenges at the core retail store.
"For UO, benefits of diversification run their course," Siegel wrote. "For FY14F, we believe the company will see continuing strength out of the two outperformers, whereas we project a -2.5% FY14F comp for UO. Although only a 4bps improvement to LY, we believe the increase in GMs in the current environment is a relative win, driven by better results at Anthro/Free People rather with ongoing pressure at UO. Inventories ended the Q higher on the back of sales misses at UO and inventory to stock new stores. The company called out weather as a major driver of the miss at UO. UO saw a ~$0.04 tax benefit in 4Q. In light of the continuing challenging trends for the UO concept, we are lowering our 1Q14/FY14/FY15 estimates."