Oppenheimer Raising Price Target On Ulta Salon, Cosmetics & Fragrance (ULTA)

Oppenheimer & Co. is raising its price target on Ulta Salon, Cosmetics & Fragrance, Inc. ULTA to $40 from $35 and is reiterating its Outperform rating on shares. In a note sent to clients Oppenheimer writes, "ULTA reported better than expected F3Q results Thursday afternoon, highlighted by robust SSS growth of 12.2% and healthy margin expansion, reflecting an ongoing improvement in business fundamentals, market share gains and strong execution. In addition, the company introduced encouraging F4Q guidance, including healthy SSS growth of 4-6% despite a more difficult base period. We are reiterating our Outperform rating on ULTA and raising our DCF-derived price target to $40 from $35 prior, as we believe the company's premium valuation is justified given its meaningful growth and margin expansion opportunities in the coming years." Shares of ULTA lost 75 cents yesterday to close at $35.72, a loss of over 2%.