Why Did Oppenheimer Upgrade Ulta Salon’s Stock?

By Carrie Williams

In a report released today, Rupesh Parikh from Oppenheimer upgraded Ulta Salon (NASDAQ: ULTA) to Buy, with a price target of $280. The company’s shares opened today at $246.91.

Parikh wrote:

“We overall look favorably upon the above-plan Q1 results reported by ULTA this evening. $2.70 topped a Street figure of $2.48 (about $0.07 of beat from lower tax rate). Comps were also ahead of plan, increasing 8.1% vs. a Street figure of +6.9% and guidance of +6-7%. Market expectations were elevated into the print and we would overall characterize the print as largely in line, but the conservative Q2 guide and muted commentary on the prestige cosmetics category could disappoint the bulls tomorrow. ULTA shares likely open lower and we would take advantage of a pullback as we still feel comfortable with our expectations for a stronger 2H18 and the attractive bottom-line delivery potential. ULTA and EL remain our top beauty picks.”

According to TipRanks.com, Parikh is a 5-star analyst with an average return of 16.1% and a 61.7% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.

Currently, the analyst consensus on Ulta Salon is Moderate Buy and the average price target is $255.93, representing a 3.7% upside.

In a report issued on May 29, Jefferies also maintained a Buy rating on the stock with a $285 price target.

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The company has a one-year high of $314.86 and a one-year low of $187.96. Currently, Ulta Salon has an average volume of 1.11M.

Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. Last month, Lorna Nagler, a Director at ULTA sold 3,000 shares for a total of $685,050.

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.