Morgan Stanley Sees a Good ULTA Salon (ULTA) Setup Into Analyst Day, Potentially $2 in EPS Upside

October 13, 2021 10:00 AM EDT
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Price: $371.45 -0.12%

Rating Summary:
    17 Buy, 15 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 18 | New: 32
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Morgan Stanley analyst Simeon Gutman reiterated an Equalweight rating and $430.00 price target on ULTA Salon (NASDAQ: ULTA) but sees a positive setup with upside ahead of the company's analyst day on Tuesday, October 19th.

The analyst stated "'21 estimates still have room to run. We think ULTA could reach $17+ in EPS vs $15 consensus, given reduced promotional activity and strong sales in 1H'21 (which featured Q2 sales/EPS beats of ~10%/~75% and revenue up ~20% on a 2Y basis). Near-term upside to numbers could keep the stock working; we think our $430 PT (13% upside from its current price) is reasonable. The larger debate in the medium-term centers on ULTA's multiple as its business matures. Square footage growth is moderating (~3% vs ~12% historically) and will contribute less to earnings growth in the future."

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 $386.92 yesterday.

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