Jefferies Lifts Numbers on Ulta (ULTA) Post Q3; ‘Numbers Better than Good’
Jefferies reiterated a Hold rating on ULTA Salon (NASDAQ: ULTA), and raised the price target to $165.00 (from $155.00), following the company's 3Q earnings report. ULTA delivered strong top-line results with comps +12.8% (vs Cons +9.5) driven predominately by growth in transactions. This top-line strength highlights early success of LT initiatives with strong growth in loyalty program and new members, re-engagement of non-active guests, and e-comm sales all contributing to the beat.
Analyst Randal Konik commented, "There's no disputing ULTA's strong growth profile and defensible positioning in the beauty space today, with the company delivering a 3Q beat on top of high expectations. As well-executed strategic initiatives start to bear fruit, we see the stage being set for long-term sustainable growth. However, we believe incremental EPS upside will be limited in the near term by ongoing investments which combined with pricey valuation keeps us Hold rated today."
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Shares of ULTA Salon closed at $163.19 yesterday.