URBN - Urban Outfitters stock should be bought on the dip - Morgan Stanley
Morgan Stanley recommended buying the pullback of Urban Outfitters (NASDAQ:URBN) due in part to the encouraging spring product reads. The recent selling pressure on URBN due to European exposure is called overly punitive with the retailer's exposure to Europe estimated to only be 10% of total sales. Looking beyond the near-term disruption, analyst Kimberly Greenberger and team's bullish thesis on URBN is tied to sector leading e-commerce, fashion execution, digital and supply chain flexibility. Meanwhile, $7 of net cash per URBN share was called supportive for valuation Morgan Stanley kept on Overweight rating on Urban Outfitters (URBN) following the report. The firm's price target on Urban Outfitters (URBN) of $34 is 11X the FY23 based on discounted cash flow. The PT is in-line with URBN's 2019 average trading multiple. Shares of Urban Outfitters are down 1.26% premarket to $25.00 vs. the 52-week trading range of $24.71 to $42.10.
For further details see:
Urban Outfitters stock should be bought on the dip - Morgan Stanley