NEW YORK (TheStreet) -- Shares of Urban Outfitters Inc. (URBN) are down 6.33% to $28.88 in early morning trading on Tuesday after the company was downgraded at William Blair and Telsey Advisory Group.
William Blair downgraded the American multinational clothing and lifestyle retail corporation to "market perform" from "outperform"
The firm said Urban Outfitters is seeing lower margins and lacks near-term visibility.
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"We are downgrading Urban Outfitters to Market Perform on a disappointing third quarter and fourth-quarter outlook and continued lack of visibility on the timing of a sustained turnaround in profitability at the Urban Outfitters division, notwithstanding easier upcoming comparisons," said William Blair analyst Sharon Zackfia.
Telsey also downgraded the company to "market perform" from "outperform," and set a price target of $33 from $44.
The firm said it lowered Urban Outfitters' rating because potential turnaround has been delayed because of continued margin challenges.
Read more about Urban Outfitters here: Urban Outfitters Plunges on Earnings: What Wall Street's Saying
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 multiple 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, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."