UPDATE: Morgan Stanley Reiterates On Ulta Salon, Cosmetics & Fragrance On Fair Valuation

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

, and raised the price target from $132.00 to $135.00. In the report, Morgan Stanley noted, “ULTA delivered stronger Q3 results led by 9.5% comps, the strongest Q3 comp across our coverage. This surpassed both the consensus estimate of 7.5% and market expectations of at least 9%. The 9.5% comp was of high quality with traffic up 5.4% and ticket up 4.1%. e-Commerce sales rose 47% and helped the comp by 130 bps while salon comps increased 10.1%. Amplifying the top-line growth were gross margins that rose ~35 bps and SG&A leverage of 17 bps.” Ulta Salon, Cosmetics & Fragrance closed on Thursday at $125.74.