Trendy retailer Urban Outfitters (URBN: sentiment, chart, options) is nearly 5% lower after Piper Jaffray cut its rating on the stock from "buy" to "neutral." Analyst Neely Tamminga cited a decline in the clothing chain's appeal to teenagers, as well as the fact that URBN is getting dangerously close to her price target of $35.

Tamminga noted that, among teens, URBN dropped from sixth place to ninth in the "preferred brands/retailer" category from fall 2007 to spring 2008. (The silver lining for the retailer? Teens still consider it number 2 in the "trendy" category.) However, the analyst allowed that this could be partly due to an older demographic filtering into URBN's retail outlets.

While URBN is down at midday, the stock's prospects still look relatively solid. Intermediate-term support from the stock's 10-week and 20-week moving averages remains intact. This trendline duo has bolstered URBN to a 44% gain since October 2007.

One point of concern is that the shares are vulnerable to further downgrades should more analysts follow Piper Jaffray into the bearish camp. Zacks reports that URBN has 14 "strong buys" and 3 "buys" from brokerage firms, compared to just 5 "holds."