Urban Outfitters Stock Slumps 15% As J.P. Morgan Downgrades To Neutral

Shares of Urban Outfitters Inc. slid 15% in premarket trade Tuesday, after J.P. Morgan downgraded the stock to neutral from overweight after the company reported lower-than-expected profit and sales for the first quarter. "The company's 1Q print puts into question URBN's multi-year gross margin flowthrough story (2H15 guided inflection with FY16 to exceed FY15) with our revised model now pointing to a low double-digit bottom line profile the next two years versus high-teens(+) previously," analysts wrote in a note. J.P. Morgan also lowered its share price target to $34 from $50. Shares had gained 16% in the year through Monday, while the S&P 500 has gained 3.4%.