Normura Initiates Coverage Ulta Salon And Sally Beauty

Loading...
Loading...

Normura initiated coverage with Neutral ratings on Ulta Salon, Cosmetics & Fragrance, Inc. ULTA with a $126 price target and Sally Beauty Holdings, Inc. SBH with a $32 price target on Friday.

Analyst Simeon A. Siegel expected “Ulta to post LDD to mid-teens sales growth amid a challenged retail environment, given growing brand awareness, analytically charted store expansion, a multiyear comp waterfall, increased loyalty growth, and increasing omni-channel capabilities.”

Siegel awaited a better entry point on the stock. The price target of $126 was based 25x the firm’s FY16 EPS estimate of $5.36 discounted back one year.

Siegel expected ongoing comp and EPS consistency in Sally Beauty, however, “with the shares up 20 percent in the last six months (vs S&P 500 up 4.3 percent), SBH has been on an impressive run, with expectations baking in (as-yet-to-occur) reacceleration in top- and bottom-line trends.”

“Although we believe SBH is a compelling long-term value, we believe the shares may take a pause in the near term, and we await a better entry point,” according to the analyst note.

The $32 price target on SBH was based on 17x the firm’s FY15E EPS of $1.71.

Sally Beauty recently traded at $30.05, down 1.89 percent.

Ulta Salon, Cosmetics & Fragrance recently traded at $131.93, down 0.23 percent.

Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetInitiationAnalyst RatingsNormuraSimeon A. Siegel
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...