Urban Outfitters (NASDAQ:URBN) surged in pre-market trading Wednesday after the retailer reported quarterly results that beat Wall Street estimates. The company reported earnings of 56 cents on revenue of $1.11 billion, compared with estimates for 36 cents on revenue of $1.09B. The beat on the bottom line was helped by a 260 basis points improvement in gross profit rate, driven by higher markups and a decrease in inventory levels. Wells Fargo analysts said URBN delivered “one of the most surprising Q1 prints this EPS season” and raised the price target by $5 to $30 per share. Barclays analysts also raised the recommendation on Urban from Equal-weight to Overweight with a price target of $38.00. The strong results and positive analyst sentiment have sent the stock soaring in pre-market trading.
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