Oppenheimer Believes Ulta Salon (ULTA) Won’t Stop Here


In a report released today, Rupesh Parikh from Oppenheimer reiterated a Buy rating on Ulta Salon (NASDAQ: ULTA), with a price target of $340. The company’s shares closed on Friday at $285.80, close to its 52-week high of $288.97.

Parikh wrote:

“With ULTA shares exceeding our prior PT of $280, we spent time revisiting our investment thesis. We now believe phase one of the rally is complete with shares reflecting the bottoming out of comp trends and baking in earnings accretion related to tax reform. We see an attractive phase two driven by the potential for comps to reaccelerate to 7-8% and prospects for a beat-and-raise story from here. ULTA shares are still compelling at ~24x NTM consensus earnings estimates, more consistent with historical trough levels. We now see a move higher to the $340-ish level. Positive catalysts remain into YE including the company’s Q3 earnings. ULTA remains our top beauty pick and one of our favorite names into year-end.”

According to TipRanks.com, Parikh is a 5-star analyst with an average return of 16.7% and a 63.8% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Ulta Salon with a $274.33 average price target, which is a -4.0% downside from current levels. In a report issued on August 28, Piper Jaffray also maintained a Buy rating on the stock with a $270 price target.

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Ulta Salon’s market cap is currently $17.11B and has a P/E ratio of 27.86. The company has a Price to Book ratio of 9.44.

Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. Most recently, in June 2018, Jeffrey Childs, the CHRO of ULTA sold 8,000 shares for a total of $2,014,640.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Ulta Beauty, Inc. is a beauty retailer of cosmetics, fragrance, skin care products, hair care products, and salon services. It provide unmatched product breadth, value and convenience in a distinctive specialty retail environment. The company was founded in January 9, 1990 and its headquartered in Bolingbrook, IL.

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