Goldman Sachs upgrades Urban Outfitters stock
Upgraded apparel retailer Urban Outfitters to buy with a 12-month price target of $93, representing more than 27% potential upside from last week's closing price. Analysts wrote in a research report: "After several years of weak same-store sales and a downturn in profitability, Urban Outfitters' main brand has reached a fundamental turning point in fiscal year 2026, and the profit side is now showing signs of improvement." Analysts said that the efficiency of payment collection for discounted promotional goods has improved and revenue has formed operating leverage. These two factors have jointly driven the company's performance to strengthen. The agency predicts that the retail brand will return to historical high-quality profitability levels by fiscal 2027 at the latest. The retail group also owns the Anthropologie sub-brand. Many investors pointed out that Anthropologie's revenue has been volatile this year, which is a major risk point in buying Urban Outfitters stock. Even so, Goldman Sachs is still optimistic that Anthropologie's business situation is stabilizing, and the purchasing intention of young consumer groups has rebounded significantly. The research report also admitted that fierce competition from peer apparel brands is a potential risk and may have an impact on Anthropologie's operating performance.