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10/17/14 04:24:23 PM
WORD ON THE STREET

V.F. Corporation, Hyatt Hotels Corporation, Urban Outfitters Inc.

V.F. Corporation(VFC) : Deutsche Bank issued a Q3 preview for VF Corp(NYSE: VFC) on Friday and saw that "fundamentals remain intact." A Buy rating was maintained while the price target was lowered from $75 to $73. Analyst Dave Weiner trimmed the "4Q & 2015 EPS model (3Q remains intact), to reflect the ongoing E/$ move from the mid $1.30s." For Q3, the firm maintained EPS at $1.11, driven by 8.4 percent revenue growth. Weiner felt the "stock should continue to outperform given (1) a multi-year repositioning which is driving global share gains/GMs, as mix shifts by channel (to retail from wholesale), by geography (away from NA), and by coalition (to OAS), (2) a proficiency in Outerwear which, weather permitting, should be a 'go-to' category this 2H and perhaps is due for a 'replacement cycle', (3) an ability to capture lower sourcing costs & manufacturing benefits, (4) focus on pursuing an accretive acquisition." The report noted the reason for a lowered price target was solely FX related. VF Corp recently traded at $63.88, up 0.16 percent. View More Analyst Ratings for VFCView the Latest Analyst Ratings 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



Hyatt Hotels Corporation(H) : Macquarie upgraded Hyatt Hotels Corporation (NYSE: H) from Neutral to Outperform and raised its price target from $65 to $68. Analysts Chad Beynon and Jeremy Luskin acknowledged "headline macro risks, but believe the growth story - 3-year estimated EBITDA and EPS CAGR of 14 percent and 25 percent, respectively - combined with favorable valuation relative to peers is overly compelling." Beynon estimated "that Hyatt has between $7-8 billion of asset value in its owned portfolio, versus a market capitalization of $8.7 billion." The analyst report noted that franchising is a growth opportunity for the company and that Hyatt is entering its highest growth phase in company history. "The pipeline of 45k rooms is extremely impressive compared to the existing room base of 135k. We expect total Hyatt rooms to grow at a 6-8 percent CAGR during the next three years vs its competitors at 3-5 percent," according to the report. Hyatt Hotels Corporation recently traded at $58.41, up 2.5 percent. View More Analyst Ratings for HView the Latest Analyst Ratings 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



Urban Outfitters Inc.(URBN) : Urban Outfitters, Inc. (NASDAQ: URBN) made its second apology in a month Thursday, this time for falling same-store sales it said will hurt profits in the current quarter. Urban Outfitters fell more than 15 percent Friday to $29.15 per share. The Philadelphia-based company last month issued a far different mea culpa, apologizing for its sale of Kent State sweatshirts stained with faux blood evoking the 1970 shooting there by the Ohio National Guard that killed four students. "Marketing mishaps like these push customers away," Macquarie's Laurent Vasilescu said Friday, although he didn't blame the recent profit warning on what is Urban Outfitters' latest departure from good taste. A list of past mistakes includes yellow T-shirts emblazoned with the Star of David and another with the slogan "Kiss Me I'm A Drunken Irish" as well as other questionable items. But Vasilescu did cut his price target 17 percent to $32 and maintained a Neutral rating. "The broader question is whether these are company specific missteps" or are symptomatic of a larger slow-down in apparel sales, Vasilescu said. Urban Outfitters' sales warning suggest may suggest a slowdown at its high-mark-up Anthropologie store brand, which could spell trouble for results in the fourth quarter and 2015, according to Barclays' Matthew McClintock, who maintained an Equal Weight rating Friday. McClintock said margins will continue to be hurt by a need to meet competitors' promotional pricing in the holiday shopping season, and in any case, repositioning Urban Outfitters to reignite growth "isn't a short-term undertaking." But Jefferies' Randal J. Konik said slower sales at the company's flagship Urban Outfitters' stores "likely remains the albatross." Konik maintained a Buy rating but cut his target 10 percent to $45 a share. Canaccord's Laura Champine trimmed her target 4 percent Friday to $47 a share, but maintained a Buy rating and likes what she sees. "We're seeing better fashion in the stores and expect a stronger assortment for the holidays," Champine said. The company's recovery, however, "is clearly moving at a slower pace than we expected," according to Champine. View More Analyst Ratings for URBNView the Latest Analyst Ratings 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



 

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