Nomura Securities Starts ULTA Salon (ULTA) at Neutral

Nomura Securities initiates coverage on ULTA Salon (NASDAQ: ULTA) with a Neutral rating and a price target of $126 saying the company has a great model but valuation is stretched.

Analyst Simeon Siegel commented, "We expect Ulta to post LDD to mid-teens sales growth amid a challenged retail environment, given growing brand awareness, analytically charted store expansion (p. 8), a multiyear comp waterfall (p. 6), increased loyalty growth (p. 19), and increasing omni-channel capabilities (p. 13). That said, at 29x FY15E EPS, we are initiating with a Neutral rating as we await a better entry point."

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 $132.24 yesterday.

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