Market Overview

UPDATE: Credit Suisse Upgrades Ulta Salon to Outperform on Pullback

Related ULTA
Top 4 Mid-Cap Stocks In The Specialty Retail, Other Industry With The Highest Operating Margin
Big 5 Sporting Goods (BGFV) in Focus: Stock Tanks 14.2% - Tale of the Tape
DANG: Take a Look at This Stock Pick (Fox Business)

Credit Suisse upgraded Ulta Salon, Cosmetics & Fragrance (NASDAQ: ULTA) from Neutral to Outperform with a $110 price target.

Credit Suisse analyst Gary Balter wrote, "Based on where the stock was trading last night in the aftermarket, it is down more than 25% from its recent high. While not having a permanent CEO and weaker gross margins in Q1 raise concerns, the question we asked is do we believe in the growth potential of the concept. … Given that our answer is yes, and given that yes implies a growth rate of 25% to 30% at a low 20's multiple, we now like that risk reward. Yes, there are issues raised primarily from the Q1 guidance on gross margin and Q4 inventory levels, but we believe these are temporary issues and that the underlying story is intact."

Ulta Salon, Cosmetics & Fragrance closed at $88.25 on Thursday.

Posted-In: Credit SuisseAnalyst Color Upgrades Analyst Ratings

 

Related Articles (ULTA)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters