ULTA Salon (ULTA) PT Rises to $395 at Morgan Stanley After NDR

Morgan Stanley analyst Simeon Gutman reiterated an Overweight rating and raised his price target to $395.00 (from $375.00) on ULTA Salon (NASDAQ: ULTA) after hosting investor meetings with ULTA management including Mary Dillon (CEO) and Scott Settersten (CFO).

The key takeaway is that ULTA's growth story appears to be on track. Management's tone was consistent with Q1 call, leading the analyst to believe sales and margins are tracking according to plan. The analyst stated "gross margin improvement seems to be continuing and ULTA feels comfortable with its 2H19 sales plan (which will lap tough compares)." "Despite its outperformance, we sense growing concerns around difficult compares in 2H19, the sustainability of gross margin expansion and recent supplier trends. We think our meetings should largely put those concerns to rest for the moment."

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 $366.39 yesterday.

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