ULTA Salon (ULTA) PT Lifted to $185 at Piper Jaffray

Piper Jaffray analyst Stephanie Wissink reiterated an Overweight rating and boosted her price target on ULTA Salon (NASDAQ: ULTA) to $185.00 (from $170.00) after strong Q3 results and guidance.

commented, "We are maintaining our Overweight and raising our price objective to $185 ($170 prior). We see potential for continued earnings outperformance on a steady growth-supported multiple on FY2 earnings. Q3 results were very strong across all the measures that matter for a retail growth company: comps +12.8%, total sales +22%, e-com +54%, loyalty +20%, and new unit performance ahead of plan. While investment spend spiked in the quarter creating margin deleverage, EPS of $1.11 bested consensus by $0.06 and our estimate by $0.09 due to sales strength. The guide was inline with models and slightly better than feared, although we note the 300-400bps step down sequentially in comp was what we had expected. For investors that can own into 2016, we maintain a positive bias and see ULTA as well positioned to continue to gain share in the beauty industry."

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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