Sterne Agee CRT Reiterates Buy rating on Ulta Salon (ULTA) Following Q1
Sterne Agee CRT reiterates a Buy rating and $168 price target on ULTA Salon (NASDAQ: ULTA) following Q1. ULTA reported Q1 EPS of $1.04, above their $0.88 to $0.93 guidance. ULTA guided Q2 EPS of $1.07 to $1.12.
Analyst Ike Boruchow commented, "ULTA started 2015 off on the right foot, posting a meaningful top- and bottom-line beat in Q1. Comps (which came in at +11.4%) continue to be driven by a mix of both traffic and ticket, as the business benefits from new customer acquisition tools and channel mix to higher-priced prestige beauty. The one point some investors may poke at is that despite the material Q1 beat, management chose not to raise the high end of their FY EPS guidance (as they called out the potential to shift payroll investments into 2H from 2016 given the strength of the business today). That said, we continue to see some of the strongest fundamentals in our space here at ULTA and continue to favor the name. Raising estimates, $168 PT."
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Shares of ULTA Salon closed at $156.27 yesterday.