UPDATE: Sterne Agee Reiterates Ultra Salon at Buy, Lowers PT to $90 on Earnings

Sterne Agee analyst Ike Boruchow published a report on Ultra Salon

that reiterated his Buy rating and lowered the price target from $102 to $90 per share. Sterne Agee reported that, “We are buying shares of ULTA on weakness. Following a below Street outlook - with elevated inventory and investment spend weighing on margins - we believe the LT thesis (footage growth, category killer, comp consistency) remains intact despite the near-term headwinds. Impressively, management still believes they can grow EPS 25% in 2013 (on a 52-week basis) which illustrates the strength of the model. Given the weaker than expected outlook, we are lowering our PT to $90 (from $102).” Shares of Ultra Salon closed at $88.37 on Thursday.