Shares of Urban Outfitters (URBN) were sinking over 3% during morning trading on Tuesday following a downgrade of the stock to "Neutral" from "Buy" with a $23.00 price target at Citi. 

The retailer is well positioned in theory however in actuality it is in trouble, Citi analyst Paul Lejuez wrote.

He sees sales remaining level through 2017 and intense pressure weighing on net income.

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