TD Cowen analyst Oliver Chen raised the price target on ULTA Beauty (NASDAQ: ULTA) to $450.00 (from $380.00) while maintaining a Hold rating.

The analyst said: "Strength driven by sequential comp improvement to +0.6% (from -1.2% in 2Q). Top categories: fragrance (+HSD%) & skincare (+MSD%), while cosmetics & haircare were down (LSD%). 4Q comp outlook of (LSD%) hopefully builds in conservatism, but competitive curation is key to consistent growth. Stock indicating +HSD% after EPS beat +13% ($5.14 vs. $4.53) & EPS guide raised +2% at midpoint.

While ULTA remains a category leader with a scaled store base, we hold a more cautious medium-term view on recent lack of execution amid a slowing industry and increasing competition. To remain competitive, ULTA will need to continue to invest in exclusives, brand incubation, and its in-store experience, resulting in near-term margin deleverage until the company can successfully return to consistently positive growth. Longer term, we do appreciate ULTA's competitive moats including its best-in-class loyalty program of +44mm members, leading specialty retail market share, and large store count of over ~1400 units."