09:40 AM EDT, 05/22/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $18 to $54, based on 15.0x our FY 25 (Jan.) EPS estimate and above the company's five-year average forward P/E multiple of 12.3x, reflecting our view of the strength of the company's Anthropologie and Free People brands. We raise our FY 25 and FY 26 EPS estimates by $0.60 to $3.60 and by $0.65 to $3.75, respectively. URBN posted normalized Q1 EPS of $0.69 vs. $0.56, $0.16 above consensus estimates on revenues of $1.20B vs. $1.11B and $22M above estimates. By brand in Q1, Anthropologie revenues increased 11% Y/Y; Free People increased 16%; Urban Outfitters ( URBN ) declined 12%; and Nuuly, the company's subscription clothing rental segment, increased 51%. Q1 adjusted gross margin expanded 106 bps Y/Y to 34.4% due to higher merchandise markups at Free People and Anthropologie, partially offset by markdowns at Urban Outfitters ( URBN ). URBN continues to maintain a debt-free balance sheet and is managing inventory well. We raise our opinion to Buy and believe the company deserves a higher multiple.