Urban Outfitters climbs on analyst report

posted: 43 DAYS 16 HOURS AGO

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CHICAGO -Shares of clothing company Urban Outfitters Inc. climbed Wednesday after a Wall Street analyst said more shoppers were heading to the retailer's stores.

Citi Investment Research analyst Kimberly Greenberger told investors in a note that the sales in locations open at least a year likely improved in September. That could help the company when it posts third-quarter results later this fall.

Most retailers have seen sales and foot traffic decrease substantially in the past year as shoppers, worried about their budgets and their jobs, cut back on spending for everything but necessities.

Greenberger also boosted her profit forecasts for the Philadelphia-based company and reiterated her "Buy" rating on its shares.

For the third quarter, Greenberger now expects Urban Outfitters to earn 34 cents per share in the third quarter and 36 cents per share in the fourth quarter. For the 2010 fiscal year, she expects a per-share profit of $1.55 and $1.85 the following year.

Analysts surveyed by Thomson Reuters expect the retailer to earn 34 cents per share in the third quarter and 35 cents in the fourth. Wall Street pegs full-year profits at $1.42 and $1.78 respectively in 2010 and 2011.

Urban Outfitters owns its eponymous store as well as Anthropologie.

The analyst raised her price target by $8 to $38, implying the stock will grow 23 percent over the next year. Its shares climbed $1.39, or 4.5 percent, to $32.35 in midday trading Wednesday. Earlier in the session the stock set a 52-week high of $32.54.

2009-10-14 12:28:30