The Philadelphia company's stock recently traded at $40.11, up 15%. It has jumped 33% over the past six months as investors expressed optimism about the distribution of COVID vaccines and the prospects of economic recovery.
As for the analysts, Morgan Stanley’s Kimberly Greenberger has an overweight rating and a $44 price target on Urban Outfitters.
“First-quarter earnings confirmed that URBN’s [earnings before interest and taxes] margin in 2021 and beyond could sustain at higher levels than 2019,” she wrote in a commentary.
“The URBN customer very likely replenishes her wardrobe this fall, and new bottoms silhouettes are driving wardrobe refreshes.”
JP Morgan’s Matthew Boss lifted his rating to neutral from underweight and his price target to $38 from $30.
“URBN maintains three fashion-forward brands, strong e-commerce penetration, and a healthy real estate portfolio in key metro markets,” he said.
He sees “comparisons at core Urban Outfitters, Anthropologie, and Free People brands showing signs of stabilization, coupled with an improved gross-margin outlook.”
Jefferies analyst Janine Stichter has a buy rating and raised her target price to $47 from $46.
“Q1 was strong but, more important, the trend is accelerating into Q2, suggesting more than just stimulus at play,” she wrote.
“We like URBN's long-term positioning. … We see URBN as an early and outsized beneficiary of the emerging fashion cycle and pent-up demand for apparel.”
In January, analysts had a more negative reaction to Urban Outfitters’ holiday sales data and the company’s management shakeup.