ULTA Salon (ULTA) PT Raised to $435 at Stifel After Comp Guidance Jumps 18%

Stifel analyst Mark Astrachan raised the price target on ULTA Salon (NASDAQ: ULTA) to $435.00 (from $400.00) after the company reported F3Q21 results that were meaningfully ahead of consensus, while raising full-year F2021 guidance and overall comp sales growth to 36%-37% (from 30%-32%), well ahead of the consensus of 34.3%.

The analyst reiterated a Hold rating, stating "Comp upside was driven by double-digit growth in most categories relative to 2019 levels, except makeup. Highlights include store sales growth increased for the second consecutive quarter compared to 2019 levels, digital sales growth was positive y/y despite tough comparisons, and Ultamate Rewards membership growth accelerated sequentially relative to F2Q21 levels, all indicating Ulta is gaining share of a solidly growing U.S. beauty market. The company gave preliminary F2022 expectations, including comp growth inline with longterm targets and EPS growth despite anticipated y/y operating margin contraction. We lift EPS estimates and our price target to $435, 21x F2023E EPS, seeing more upside than downside from current levels."

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