Jefferies Increases Price Target on Ulta Salon (ULTA)

Jefferies increases its price target on Ulta Salon ULTA from $25 to $34. In a note to clients, Jefferies writes, "ULTA trades at nearly 30x our '11E EPS of $1.29 and >10x based on EV/EBITDA. Our new $34 target is based on ~25x '10 EPS and ~10x EV/EBITDA, which reflects rising market multiples for growth retailers over the last few months. Risks to our price target include slowing sales and multiple compression on the shares." ULTA closed yesterday at $35.72.