Jefferies Lifts Numbers on Ulta (ULTA) Post Q3; ‘Numbers Better than Good’

Jefferies reiterated a Hold rating on ULTA Salon (NASDAQ: ULTA), and raised the price target to $165.00 (from $155.00), following the company's 3Q earnings report. ULTA delivered strong top-line results with comps +12.8% (vs Cons +9.5) driven predominately by growth in transactions. This top-line strength highlights early success of LT initiatives with strong growth in loyalty program and new members, re-engagement of non-active guests, and e-comm sales all contributing to the beat.

Analyst Randal Konik commented, "There's no disputing ULTA's strong growth profile and defensible positioning in the beauty space today, with the company delivering a 3Q beat on top of high expectations. As well-executed strategic initiatives start to bear fruit, we see the stage being set for long-term sustainable growth. However, we believe incremental EPS upside will be limited in the near term by ongoing investments which combined with pricey valuation keeps us Hold rated today."

For an analyst ratings summary and ratings history on ULTA Salon click here. For more ratings news on ULTA Salon click here.

Shares of ULTA Salon closed at $163.19 yesterday.

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