NEW YORK (AP) -- An analyst is raising her rating for Urban Outfitters because she thinks the stock market is overreacting to the retailer's quarter-to-date same-store sales performance.
Earlier this month Urban Outfitters Inc. disclosed in a regulatory filing that revenue at stores open at least a year is up by a mid-single-digit percentage rate so far for the third quarter. The results include direct-to-consumer sales, which generally includes online and catalog sales.
This figure is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.
Urban Outfitters is based in Philadelphia. Its brands include Free People, Anthropologie and its namesake.
Laura Champine of Canaccord Genuity said in a client note the retailer's stock is down 11 percent since reporting the quarter-to-date results. But she said the growth "is a healthy indication of sustained market share gains given the challenging apparel environment that includes flat to negative mall traffic."
Champine views the recent drop in the stock as a buying opportunity.
She lifted Urban Outfitters' rating to "Buy" from "Hold" and maintained a $48 price target.
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