Piper Jaffray analyst Stephanie Wissink raised her price target on ULTA Salon (NASDAQ: ULTA) to $130.00 (from $97.00) following strong Q3 results but stopped short of upgrading the stock and maintained a Neutral rating.

Wissink commented, "Following a strong Q3 report, we are maintaining our Neutral rating, but we are incrementally encouraged by momentum in both sales and margin. Q3 EPS of $0.91 compared favorably to consensus of $0.84 and our $0.83 with solid contribution from across the P&L. A +9.5% comp gain reflected MSD increases in both traffic and ticket. E-com growth neared 50%. New stores continue to outpace pro forma models & small market tests add another layer of growth optionality. Q4 guide brackets our est and while the company's investment phase in '15 & '16 will limit EPS growth somewhat (mid-teens vs. low-20% range LT), we think shares will continue to trade at a premium to EPS growth, given scarcity of sq ft growth supported by consumer and secular trends. We are raising our multiple to 29x; on upwardly revised estimates, our PT is $130 (vs. $97 prior)."

The firm raised FY 2015 EPS from $3.79 to $3.88 and FY 2016 EPS from $4.39 to $4.50.

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Shares of ULTA Salon closed at $125.74 yesterday.