Baird Upgrades Urban Outfitters, Inc. (URBN) on Nuuly Growth

Urban Outfitters, Inc. (NASDAQ:URBN) is among the 10 Best Growth Stocks Under $100 to Buy Now. Mark Altschwager, an analyst at Baird, raised the price target for Urban Outfitters, Inc. (NASDAQ:URBN) to $90 from $75, while elevating the rating from “Neutral” to “Outperform”. This price appreciation of 20% underscores the company’s position for a turnaround.

The company recently reported strong first-quarter results, with a 74% increase in net income stemming from margin improvement. The investors are closely monitoring the giant’s subscription/rental business, Nuuly, which is anticipated to grow 43% to $540m this year.

To sum it up, Urban Outfitters, Inc. (NASDAQ:URBN) is a unique “growth at a reasonable price” stock that is witnessing strong comp sales growth in each of its brands, and with even more room to grow via both price hikes and traffic increases. As long as the company is able to capitalize on Nuuly, we can expect it to show sustained momentum.

Urban Outfitters, Inc. (NASDAQ:URBN) is a Pennsylvania-based fashion business that operates through three segments: Retail, Wholesale, and Subscription. Incepted in 1970, the company serves its customers directly through websites and retail stores, as well as social media and external sources. While the broader market delivered nearly 100% return in five years, URBN has exhibited a return of 295%.

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