UPDATE: Morgan Stanley Reiterates Equal-Weight Rating, Raises PT on Ulta Salon, Cosmetics & Fragrance Following Solid Q2 Results

In a report published Friday, Morgan Stanley analyst Simeon Gutman reiterated an Equal-Weight rating on

, and raised the price target from $114.00 to $121.00. In the report, Morgan Stanley noted, “ULTA's Q2 release delivered on two critical levels. First, Q2 results were strong and much better than expected driven by 9.6% comps and ~125 bps of EBIT margin expansion. Second, the much anticipated 5-year outlook was solid, embedding a mid-teens EBIT margin target and low 20% long-term EPS growth. All of this excludes share buyback which we expect to boost annual EPS growth by approximately 2%.” Ulta Salon, Cosmetics & Fragrance closed on Thursday at $97.48.