Analyst Praises Retailer's 2023 Forecast, Cheap Valuation

The analyst also upped the security's price target

Deputy Editor
Jun 13, 2023 at 8:57 AM
facebook X logo linkedin

Morgan Stanley upgraded shares of Urban Outfitters, Inc. (NASDAQ:URBN) to "overweight" from "equal weight" and raised its price target to $41 from $27. The analyst said the retailer is poised for an "inflection point," with a de-risked 2023 forecast and cheap valuation. 

Urban Outfitters stock is 3.8% higher at $33.64 before the bell, set to add to a nearly 36% year-to-date lead. The equity found support from the $30 region after a late-May bull gap on the charts, while the wishy-washy 10-day moving average is now firmly underneath. 

Coming into today, the majority of the brokerage bunch were cautious. Of the 11 in coverage, five said "strong buy," and six said "hold." Meanwhile, the 12-month consensus price target of $32.63 is a slim 0.7% premium to last night's close. Short interest has also fallen 12.7% over the last month, and the shares sold short represent 14.1% of URBN's total available float. 

Options traders have been more bullish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Urban Outfitters stock sports a 10-day call/put volume ratio of 1.12, which stands higher than 84% of readings from the past year. This means options traders have been picking up long calls at a much quicker-than-usual clip. 




Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI