Goldman Sachs Reiterates Buy on Ulta Salon, Cosmetics & Fragrance on Repurchase Authorization
In a report published Monday, Goldman Sachs analyst Matthew J. Fassler reiterated a Buy rating and $93.00 price target on Ulta Salon, Cosmetics & Fragrance (NASDAQ: ULTA).
In the report, Fassler noted, “ULTA announced its Board has approved a $150 million share repurchase authorization, effective immediately, that will be funded with available working capital. There is no stated expiration for the authorization. While it is unusual for companies to repurchase shares at multiples as high as those currently afforded ULTA (22X our 2013E EPS estimate, and 18X 2014E), we view the new authorization as an incremental positive, and consider the buyback a good use of capital relative to other options.”
Ulta Salon, Cosmetics & Fragrance closed on Friday at $74.14.
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