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UPDATE: Sterne Agee Initiates Ulta Salon at Buy; Pullback Creates Opportunity

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Sterne Agee initiated Ulta Salon, Cosmetics & Fragrance (NASDAQ: 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.

Latest Ratings for ULTA

Sep 2015Wolfe ResearchDowngradesOutperformPeer Perform
Sep 2015RBC CapitalInitiates Coverage onSector Perform
Aug 2015Morgan StanleyMaintainsEqual-weight

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