Wells Fargo Neutral on Urban Outfitters (URBN)

Urban Outfitters Inc. (NASDAQ:URBN) is one of the 15 Most Undervalued NASDAQ Stocks to Buy According to Wall Street Analyst.

Wells Fargo, on February 26, reduced its target price on Urban Outfitters by 6.3% to $75 (from $80), while retaining the firm’s Equal Weight call on the stock.

The firm liked what it saw in Urban’s Q4 FY 2026 earnings report (released on February 25), specifically the company’s notable post-holiday recovery. This recovery was evident in the net sales figures, with sales growth accelerating in January 2026 relative to the holiday period (November to December 2025). This acceleration was seen across Urban’s retail segments: Urban Outfitters, Free People, and Anthropologie.

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Wells Fargo was also positive on management’s upbeat tone when talking about their FY 2027 guidance. Management said that it is “optimistic about each brand’s ability to continue to capture market share in FY 2027,” and projected full-year sales growth to hit the high single-digits. They are also expecting a 25-basis point improvement in gross profit margins, even if tariffs remain at their pre-Supreme Court decision levels. Thus, the firm thinks that there is potential upside to-be-had here if tariff rates do go down.

All in all, the firm argued that “there is more good than bad in the story” of URBN. However, investors should remain patient, as “riskier” firms (such as URBN) remain tough in today’s market environment.

Urban Outfitters Inc. (NASDAQ:URBN) is a general consumer product retailer and wholesaler, operating through its brands: Anthropologie, BHLDN, Free People, Terrain, Urban Outfitters, and Nuuly. The company is based in Philadelphia, Pennsylvania, and was founded in 1970 by Richard A. Hayne and Scott A. Belair.

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