Jefferies Raises PT on Ulta Salon to $40 (ULTA)

Jefferies is out with its report today on Ulta Salon, Cosmetics & Fragrance ULTA, raising its price target from $34 to $40.

In a note to clients, Jefferies writes, "ULTA finished off the year with a bang, putting sales and margins at a record high during calendar 2010. While we continue to view this as a unique retailer with tremendous growth potential, high valuations make us hesitant on the stock. With peak fundamentals and daunting compares in 2011, we await a more attractive entry point to become more constructive. Raising PT to $40 from $34 on updated valuation and estimates. Maintain Hold."

Shares of ULTA closed Thursday at $42.11, up 2.38% from Wednesday's close.