Nomura Securities Upgrades ULTA Salon (ULTA) to Buy

Nomura Securities upgraded ULTA Salon (NASDAQ: ULTA) from Neutral to Buy with a price target of $177.00 (from $138.00).

Analyst Simeon Siegel commented, "We are upgrading shares of Ulta to Buy as we put aside our valuation concerns and embrace expectations for ongoing upward estimate revisions. Our Neutral rating was predicated on valuation despite strong appreciation for the fundamentals. However, as specialty continues to gain share of beauty distribution and as Ulta continues gain share within specialty, we expect industry-leading comps and unit growth will continue to support industry-leading valuation. We expect shares to grind continually higher in the face of ongoing execution and we raise our TP to $177, which represents 30x our FY16 estimates."

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 $154.16 yesterday.

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