Oppenheimer Raises Price Target on Ulta Salon (ULTA) to $235 Ahead of 1Q Report

Oppenheimer maintained an Outperform rating on ULTA Salon (NASDAQ: ULTA), and raised the price target to $235.00 (from $225.00), ahead of the company's 1Q earnings report. Oppenheimer expects EPS and comps at ULTA to meet current consensus expectations of $1.29 and 10.7%, respectively. This compares with management guidance of $1.25-$1.30 and 9-11%.

Analyst Rupesh Parikh commented, "ULTA will report Q1 results on 5/26. We have reviewed recent datapoints and evaluated prospects into the print. Based on our work, we expect another solid quarter and believe recent industry developments—particularly accelerating challenges in the department store channel—bode well for ULTA's ability to sustain comp momentum. We are again lifting our PT (to $235 from $225) and believe ULTA remains on track to achieve more of a bullish scenario, as outlined in our prior deep dive in early April. Sentiment into the print remains harder to read given a much higher valuation, somewhat offset by short interest consistent with recent peaks. We would be buyers on any potential pullback should shares succumb to profit taking. ULTA remains a top pick."

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 $208.47 yesterday.

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