DA Davidson analyst John Morris keeps his Buy rating and $36 price target on Urban Outfitters after its Q3 results, saying that its 1c earnings miss was due to the negative impact of a higher tax rate and its softer gross margins were offset by strong comp results. The analyst states that inventory levels are high going into Q4 to protect Holiday sales against the impact of tariffs and due to excess inventory in the company's wholesale channel, but also cites the management forecasting inventories to be in line by the end of Q4. Morris adds that Urban Outfitters' Anthropologie division notably outperformed in Q3 as it benefited from the launch of a new plus-size line called "A+".