Urabn Outfitters was gaining 1.5% to $36.79 in morning trading.
The analyst firm set a price target of $43 for the retailer. Analyst Eric Beder said that a pricing survey and store tours suggest Urban Outfitters is turning the corner, with both Anthropologie and Free People remaining strong.
"Further, with URBN within 10% of its 52-week low and Street sentiment on the name among the weakest we can recall, we believe the risk/reward in the name is now compelling," Beder wrote. "Our new price target of $43 translates to 17.5X our FY16 EPS projection of $2.47 (15.4X cash adjusted); we believe URBN, as one of the few visible growth stories in retailing, is well worth a premium multiple."
Separately, TheStreet Ratings team rates URBAN OUTFITTERS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate URBAN OUTFITTERS INC (URBN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, expanding profit margins and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."