Ulta Beauty price target raised to $525 from $480 at Morgan Stanley

Morgan Stanley analyst Simeon Gutman raised the firm’s price target on Ulta Beauty to $525 from $480 and keeps an Equal Weight rating on the shares. The firm is raising its target multiple as it marks-to-market its current valuation, but notes it set its multiple at a slight discount to the long-term multiple, which it thinks is warranted given maturing square footage growth, normalizing comps, and near-term margin contraction.