Ulta Salon (ULTA) Reiterated Neutral At Nomura On Valuation PT To $315

Nomura/Instinet analyst, Simeon Siegel, reiterated his Neutral rating on shares of ULTA Salon (NASDAQ: ULTA) and raised his price target to $315.00 (from $311.00) after Q4 comps of +9.4% were driven by +7.1% growth in transactions and a +2.3% increase in ATV. FY19 Revenue guidance is in the LDD % range, on comp-store sales growth of 6-7%, and 20-30% Ecomm growth. FY19 EPS guidance was in the range of $12.65-$12.85, including the impact of ~$700mn in share repos (contributing 4pts of EPS growth).

The analyst stated "ULTA’s 4Q gave bulls what to appreciate with a comp and reported margin
expansion which helped to ease recent fears". However he believes the growth curve is flattening "We remain Neutral following our recent downgrade as we recognize one of the best stories in retail, trading near all-time highs, is likely beginning its transition to a still-impressive-but-sub-20% net income grower".

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 $326.00 yesterday.

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