A new Ebola report is out, and it is likely to have an adverse impact on the stock of Lakeland Industries, Inc. (NASDAQ:LAKE). WHO announced that Nigeria, Africa’s most populous nation and one in which Ebola had killed people, was now free from the virus. That marked an important achievement in the fight against Ebola, a virus that has killed more than 4,500 people and infected thousands more in West Africa.
Lakeland Industries, Inc. (NASDAQ:LAKE) makes hazmat suits used by health workers and other people in Ebola-prone locations. The stock gained as fears over widespread Ebola infection escalated around the world. Increasing cases of Ebola were speculated as creating high demand for the hazmat suits, thereby boosting sales on the front.
The direction of the stock of Alpha Pro Tech, Ltd. (NYSEMKT:APT) can be traced to the latest Ebola update. WHO today declared Nigeria free of Ebola virus. That followed several weeks of no new infections. Nigeria was one of the West African countries that had been threatened by Ebola.
Alpha Pro Tech, Ltd. (NYSEMKT:APT) makes protective garments for handling Ebola situation. A decline in new Ebola infections is good news, but not very good news for that has stock derived most of its gains from Ebola speculations. Investors expected Ebola to create high demand for protective garments, thereby feeding Alpha Pro Tech, Ltd. (NYSEMKT:APT)’s revenue basket.
Urban Outfitters, Inc. (NASDAQ:URBN) was lowered to Neutral rating from Buy at Goldman Sachs Group Inc (NYSE:GS). The firm also cut its target price on the stock to $31 from $44. Additionally, analysts at Goldman Sachs narrowed their EPS outlook for Urban Outfitters, Inc. (NASDAQ:URBN) for the fiscal years 2015, 2016 and 2017.
As such, the specialty retailer now expects to achieve EPS of 1.72 for FY15, $1.93 for FY16 and $2.13 for FY17. It originally expected EPS of $1.93 for FY15, $2.32 for FY16 and $2.58 for FY17. The analysts commented that their adjustment of expectations for the stock is linked to the recent warning about 3Q performance.
Although Goldman Sachs moved to narrow its view on the stock of Urban Outfitters, Inc. (NASDAQ:URBN), several other analysts still hold out positive recommendations on the stock. Such include analysts at Canaccord Genuity that have Buy rating on the stock and recently raised their target price on it to $49 from $48.
Urban Outfitters, Inc. (NASDAQ:URBN) managed to grow its revenue by 7% to $811 million in the most recent quarter. However, soft demand, competition and escalating costs remain issues of concern.