Needham and BMO Initiate Coverage of Urban Outfitters
Needham and BMO Capital initiated coverage of Urban Outfitters following the retailer's report of record second-quarter fiscal 2027 sales.
Urban Outfitters, Inc. reported record second-quarter fiscal 2027 sales of $1.66 billion and adjusted earnings of $1.72 per share, prompting two investment firms to initiate coverage of the company.
Needham issued a Buy rating with a price target of $100.00, citing strong growth potential across the retail portfolio. The firm specifically highlighted long-term opportunities for Nuuly and Free People, steady growth for Anthropologie, and the potential for margin recapture for the Urban Outfitters brand. Needham also noted the company's strong financial position, which includes nearly $1 billion in cash and marketable securities and no debt.
BMO Capital initiated coverage with a Market Perform rating and a price target of $80. The firm noted that the company's operating margin has exceeded 10% for the first time since 2015.
