** Apparel retailer Urban Outfitters' URBN.O shares up 17.79% at $70.2 in premarket trading

** Anthropologie’s parent logged Q1 net sales at $1.33 billion vs estimates of $1.29 billion, according to data compiled by LSEG

** Sales driven by strong brand demand despite consumer spending slowdown

** J.P. Morgan upgrades URBN to "overweight" from "neutral"; raises PT to $78 from $63, a 30.8% upside to the stock's last close

** Brokerage sees long-term growth potential, expecting "regular-price selling & occupancy leverage", while the retailer's clothing rental service Nuuly continues to grow profitably

** Avg rating of 14 analysts is "hold"; median PT $71.5 - data compiled by LSEG

** As of last close, URBN stock is up 8.6% YTD

(Reporting by Akriti Shah in Bengaluru)

((akriti.shah@thomsonreuters.com))