Stock Price & Analysis

Buy URBN stock as it shows strong financial performance with increasing revenue and positive analyst ratings. Sell URBN stock if you prefer to lock in profits amid recent insider selling activity.

The price prediction for URBN stock in 2025 is $63-$68, driven by strong sales growth and brand performance. Analysts have raised their targets, with Barclays setting a $68 target and Morgan Stanley upgrading to Overweight. The company's record Q4 results and expanding margins support this bullish outlook.

The S1 support level for URBN Stock is $48.31 ,The R1 resistant level for URBN Stock is $54.31.

As of the end of day on 2025-03-24, the price of URBN Stock was $53.58.

The target price for URBN Stock according to analyst rating is 60.55, with the highest price target at 70.00 and the lowest at 40.00. Analysts have a Moderate Buy rating on URBN Stock overall.

The market cap of URBN is $4.9B.

Analysis and Insights

To determine whether Urban Outfitters (URBN) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

• P/E Ratio: URBN's P/E ratio is 10.31 (Q3) and 13.01 (Q4), indicating moderate valuation relative to earnings.
• EV/EBITDA: The EV/EBITDA ratio is 5.15 (Q3) and 7.58 (Q4), suggesting reasonable valuation.
• Price-to-Sales (PS): The PS ratio is 0.63 (Q3) and 0.94 (Q4), indicating undervaluation relative to revenue.
• Price-to-Book (PB): The PB ratio is 1.41 (Q3) and 2.07 (Q4), showing the stock is near its book value.

Financial Performance:

• Revenue Growth: Revenue increased from $1.36B (Q3) to $1.63B (Q4), showing growth.
• Net Income: Net income rose from $102.91M (Q3) to $120.30M (Q4), indicating improving profitability.
• Gross Margin: Gross margin is 36.52% (Q3) and 32.25% (Q4), healthy for retail.
• ROE: ROE is 15% (Q3) and 17.56% (Q4), showing efficient equity use.

Market Sentiment and Analyst Ratings:

• Analyst Ratings: Mixed, with Buy and Hold ratings. Price targets have increased, reflecting confidence.
• Insider Sentiment: Negative, with increased insider selling.

Technical Analysis:

• RSI: 35.45, suggesting potential overselling and a buy opportunity.
• Fibonacci Levels: Current price ($49.28) is below resistance levels, indicating undervaluation.

Conclusion:

Based on moderate valuation, positive financials, and improving sentiment, URBN appears undervalued rather than overvalued. Its growth and profitability metrics support a positive outlook.

Urban Outfitters, Inc. is a lifestyle products and services company. The Company operates through three segments: Retail, Wholesale and Nuuly. The Retail segment includes its store and digital channels and consists of its Anthropologie, Free People, FP Movement, Terrain, Urban Outfitters and Menus & Venues brands. The Wholesale segment consists of the Free People, FP Movement and Urban Outfitters brands. The Wholesale segment sells through the department and specialty stores worldwide, digital businesses and the Retail segment. The Wholesale segment primarily designs, develops and markets apparel, intimates and activewear. The Nuuly segment consists of the Nuuly brand, which includes Nuuly Rent and Nuuly Thrift and offers customers ways to explore fashion. The Company offers Nuuly Thrift, which is a peer-to-peer resale marketplace where customers can buy and sell any brand of women’s, men’s, and kids’ apparel, shoes, and accessories. The Company operates approximately 700 stores.

URBN stock is predicted to reach $68 by 2030, driven by strong financial performance and positive analyst sentiment. The company's recent revenue growth and improved margins support this bullish outlook. Analysts have raised their targets, with Barclays recently increasing their price target to $68, reflecting confidence in the stock's long-term potential.

URBN has a total of 10920 employees.