Urban Outfitters downgraded to Underperform from Hold at Jefferies

Jefferies downgraded Urban Outfitters to Underperform from Hold with a price target of $32, down from $42. The firm’s latest data shows a “notable deceleration” in rolling three-month foot traffic to all three of Urban’s brands. Double digit traffic growth at year-end at Anthro and Free People appears to be slowing to low single digits, while the turnaround at Urban “also appears vulnerable,” the analyst tells investors in a research note. The firm sees sees potential for the shares to de-rate due slowing to foot traffic data, promotional headwinds, and increased competition.