This morning on Forbes.com'Best Analyst 2006 Outlook: Retail
(Andrew T.Gillies, 8am 11/30)
Holly Guthrie Morgan Keegan & Co. Specialty Retail, Personal Products
While retail analyst Holly Guthrie sees the threat of inflation and rising interest rates pressuring disposable income in 2006, she's not giving up on the American shopper. "The consumer will be there," she says, "They will be spending most definitely, especially on their kids at the holidays and for unique items."
From her coverage list, Guthrie singles out Urban Outfitters (nasdaq: URBN
) as a bullish bet. She thinks the company--also proprietor of the Anthropologie
and Free People retail outlets--could quadruple its store count. "It's one of the best-managed companies in the retail sector," she says, noting its tendency to carefully incubate concept ideas before rolling them out.
Note: In the last five years, Urban Outfitter's share price has enjoyed a good run and now stands at a pricey 46 times above latest 12-month earnings per share. It may be worth it, if you believe profit projections from Wall Street. Security analysts submitting forecasts to Thomson First Call project that the company will turn in annualized earnings growth of 25% over the next three to five years. '