Urban Outfitters' sales trends in Q3 "were decent" and momentum continues into Q4, but this will be overshadowed by a "more muted trend" at the namesake division which, combined with high inventory, continues to drive below-plan gross margin, Jefferies analyst Janine Stichter tells investors in a research note. The analyst lowered her price target for the shares to $33 from $35 but keeps a Buy rating on the name. She likes the investments Urban Outfitters is making to grow its business and believes the core concepts remain well positioned long term. However, the company will not receive credit for these aspects until near-term trends stabilize, adds Stichter.

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Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here