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Jefferies Raises Price Target on ULTA Salon (ULTA), Believes Street Was Anticipating More Outlook Upside

December 2, 2011 9:30 AM EST
ULTA Hot Sheet
Rating Summary:
    1 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Jefferies is reaffirming its Hold rating on shares of ULTA Salon (NASDAQ: ULTA) while increasing its price target from $60 to $65.

The company reported solid Q3 results as sales, margins, and future expectations all topped the firms estimates. Jefferies believes the Street may have been looking for more upside to the to the company's guidance than management provided. As a results the firm forecasts that shares may remain flat while trading today.

An analyst at Jefferies comments, "Management remains extremely focused on a variety of long term initiatives, which are all on track or ahead of plan. Notably, sqft guidance for next year was raised to the high end of the long term 15-20% range, as their real estate pipleline is robust and new stores are performing above expectations. The new DC should also help support store growth. Importantly, mgmt reiterated their operating margin goals which we view positively."

The firm is increasing its FY12 and FY13 EPS estimates from $1.72 and $2.15 to $1.82 and $2.25.

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 $68.49 yesterday, with a 52 week range of $32.01-$75.69.


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