As reported earlier, MKM Partners analyst Roxanne Meyer upgraded Urban Outfitters to Neutral from Sell and raised her price target to $41 from $20. The analyst cites her expectations of a sales and margin recovery in the second half, with Q4 commentary suggesting improving trends after the company's worse than expected performance in 2017. Meyer adds that contrary to her prior view, the improvements at Anthropologie were driven by better assortment and reduced promotional activity rather than easy comps, further noting that Q2 gross margin recovery will become more apparent on "easier markdown compares". The analyst also attributes her new neutral stance to "uncertainty around the success of increased private label at Anthropologie".