Goldman Sachs upgrades Urban Outfitters rating
Upgraded shares of retailer Urban Outfitters to "buy" with a 12-month price target of $93, implying more than 27% upside from last week's closing price. "After several years of weak same-store sales and profitability trends, UO Brands has turned a positive corner in fiscal 2026 and is now showing signs of margin improvement," the analysts wrote. Analysts attributed the stronger results to discount recycling and sales leverage. They expect the retail brand to return to its historical levels of success in fiscal 2027. The company also owns the Anthropologie brand, and investors pointed out that buying Urban Outfitters stock is risky due to Anthropologie's inconsistent sales performance year-to-date. However, Goldman Sachs expressed optimism about Anthropologie's prospects, believing that the brand "is stabilizing, especially among younger consumers, and its purchase intention has improved significantly." Goldman Sachs also admitted that competition from other retail brands is a risk factor that may affect Anthropologie's performance.