Latest news with #PaulLejuez
Yahoo
03-07-2025
- Business
- Yahoo
Citi Sees Nuuly as Underappreciated Growth Engine for Urban Outfitters (URBN); Reiterates Buy
Urban Outfitters Inc. (NASDAQ:URBN) is one of the 20 undervalued momentum stocks that are taking off. On June 17, Citi analyst Paul Lejuez highlighted Nuuly, Urban Outfitters' (URBN) apparel rental business, as a key driver of the company's future growth. In a note following an investor event held last week, Lejuez reiterated his Buy rating on URBN with a $75 price target, emphasizing the growing importance of Nuuly in the broader business strategy. Nuuly, a part of the company's subscription segment, is primarily a monthly women's apparel subscription rental service and offers a wide selection of the Company's brands, third-party brands and one-of-a-kind vintage pieces via a custom-built, digital platform. Subscribers select their products each month, wear them as often as they like, and then swap into new products the following month. A proud woman in business clothing, standing in a modern store stocking up on women's apparel. While rental models in apparel have typically been subject to skepticism from investors, Lejuez suggests that Urban Outfitters may have found a way to make the economics work. He believes Nuuly has emerged as the clear leader in the rental segment and is already showing signs of profitability, which appears no mean feat in this space. Lejuez also argues that the market undervalues Nuuly's growth potential as he estimates that it could drive up to 40% of Urban Outfitters' total revenue growth over the next five years. His analysis suggests that this upside is not fully reflected in the current share price. As such, Lejuez believes that Nuuly deserves more investor attention in the future, as it may play a much larger role in shaping Urban Outfitters' growth trajectory than currently assumed. Urban Outfitters Inc. (NASDAQ:URBN) is a lifestyle products and services company that operates a portfolio of global consumer brands, primarily including Anthropologie, Free People, FP Movement, Urban Outfitters, and Nuuly. While we acknowledge the potential of URBN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and 10 Best Tech Stocks to Buy According to Billionaires. Disclosure: None. Sign in to access your portfolio
Business Insider
07-06-2025
- Business
- Business Insider
CFRA downgrades American Eagle (AEO) to a Hold
CFRA analyst Zachary Warring downgraded American Eagle (AEO – Research Report) to a Hold today and set a price target of $10.00. The company's shares opened today at $10.24. Confident Investing Starts Here: Warring covers the Consumer Cyclical sector, focusing on stocks such as American Eagle, Ralph Lauren, and Caesars Entertainment. According to TipRanks, Warring has an average return of 4.7% and a 52.31% success rate on recommended stocks. In addition to CFRA, American Eagle also received a Hold from Citi's Paul Lejuez in a report issued on June 2. However, on May 30, Barclays maintained a Sell rating on American Eagle (NYSE: AEO). The company has a one-year high of $22.83 and a one-year low of $9.45. Currently, American Eagle has an average volume of 8.39M.
Yahoo
03-06-2025
- Business
- Yahoo
Dollar General Stock Skyrockets Nearly 14%--But Is This Just the Calm Before a Long Decline?
Dollar General (NYSE:DG) shares surged nearly 14% at 12.11pm after the company beat Wall Street's Q1 expectations, reporting adjusted earnings of $1.78 per share on $10.4 billion in revenue. Same-store sales rose 2.4%, driven by higher average basket sizes despite softer foot traffic. CEO Todd Vasos noted strong market-share gains in core categories like food and household essentialsplus an encouraging uptick in spending from middle- and high-income consumers. Citi's Paul Lejuez, who upgraded the stock in April, said the quarter was solid enough to support the rally, even with tariff uncertainties still on the radar. Warning! GuruFocus has detected 7 Warning Sign with DG. That near-term boost, however, doesn't erase a broader concern: growth has hit a wall. A look at the last 12 quarters shows revenue stuck between $9 and $10 billion, with net margins hovering in a tight 3.5% to 5% range. Net income and EBITDA have barely budged. Longer-term data suggests Dollar General's strongest growth phase happened years agowell before COVID. While the business rebounded post-pandemic, it hasn't regained that earlier acceleration. Since 2023, results have been flat, pointing to a possible saturation of the current model. In the short term, DG could continue to benefit as a defensive play in a shaky macro environment. But the charts are starting to whisper a tougher truth: this might be as good as it gets without a major shift in strategy. Investors chasing Tuesday's spike may want to pause and ask whether they're buying momentumor just buying time. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-06-2025
- Business
- Yahoo
Dollar General Stock Skyrockets Nearly 14%--But Is This Just the Calm Before a Long Decline?
Dollar General (NYSE:DG) shares surged nearly 14% at 12.11pm after the company beat Wall Street's Q1 expectations, reporting adjusted earnings of $1.78 per share on $10.4 billion in revenue. Same-store sales rose 2.4%, driven by higher average basket sizes despite softer foot traffic. CEO Todd Vasos noted strong market-share gains in core categories like food and household essentialsplus an encouraging uptick in spending from middle- and high-income consumers. Citi's Paul Lejuez, who upgraded the stock in April, said the quarter was solid enough to support the rally, even with tariff uncertainties still on the radar. Warning! GuruFocus has detected 7 Warning Sign with DG. That near-term boost, however, doesn't erase a broader concern: growth has hit a wall. A look at the last 12 quarters shows revenue stuck between $9 and $10 billion, with net margins hovering in a tight 3.5% to 5% range. Net income and EBITDA have barely budged. Longer-term data suggests Dollar General's strongest growth phase happened years agowell before COVID. While the business rebounded post-pandemic, it hasn't regained that earlier acceleration. Since 2023, results have been flat, pointing to a possible saturation of the current model. In the short term, DG could continue to benefit as a defensive play in a shaky macro environment. But the charts are starting to whisper a tougher truth: this might be as good as it gets without a major shift in strategy. Investors chasing Tuesday's spike may want to pause and ask whether they're buying momentumor just buying time. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
Citi Keeps Neutral Stance on Target (TGT), Cuts PT
On May 22, Citi analyst Paul Lejuez lowered the firm's price target on Target Corp. (NYSE:TGT) to $94 from $97, keeping a Neutral rating on the shares. The downgrade came in response to the company's weaker-than-expected fiscal Q1 2025 results reported on May 21. Management lowered the company's guidance for fiscal year 2025, which, according to the analyst, suggests that weak sales trends observed in Q1 are expected to continue. A woman purchasing groceries at a Target store, with a cart full of products. Target Corp. (NYSE:TGT) reported net sales of $23.8 billion, compared with $24.5 billion in 2024. Comparable sales dropped 3.8% in fiscal Q1 2025, with a 5.7% decline in comparable store sales. Management now expects a low-single-digit decline in sales for fiscal 2025, along with a GAAP EPS of $8.00 to $10.00. Adjusted EPS is anticipated to be in the $7.00 to $9.00 range. The analyst told investors in a research note that the lower fiscal 2025 guidance "seems to provide cushion" after a weak quarter, with higher-than-planned apparel and home inventories and a loss in market share in more than half of the company's 35 categories. However, the firm believes the earnings guidance has not been "derisked." The analyst opined that Target's (NYSE:TGT) gross margin pressure is likely to extend to H2 2025 since it is dealing with headwinds "that may not be quick to improve." While we acknowledge the potential of TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TGT and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. Sign in to access your portfolio
