UPDATE: Sterne Agee Initiates Ulta Salon, Cosmetics & Fragrance at Buy; Pullback Creates Opportunity

Sterne Agee initiated Ulta Salon, Cosmetics & Fragrance ULTA with a Buy rating and a $102.00 price target. Sterne Agee noted, "The company has one of the largest footage opportunities in specialty retail (less than 50% penetrated to 1,200-store target) and is the only beauty products retailer that combines the three major beauty industry distribution channels (prestige, mass channel, salon), while also operating a traffic-driving salon services business. The stock has declined sharply in recent months, primarily a result of management turnover, as CEO Chuck Rubin resigned in February and two CFOs have resigned in the last 12 months. We believe investors are overly focused on management turnover and are undervaluing ULTA's extremely strong growth potential and sound fundamentals." Ulta Salon, Cosmetics & Fragrance closed at $88.78 on Friday.