Ulta Beauty price target raised to $545 from $490 at DA Davidson

DA Davidson analyst Michael Baker raised the firm’s price target on Ulta Beauty to $545 from $490 and keeps a Buy rating on the shares. Big box retailers have done better than expected during the Q3 earnings season and Ulta may have topped them all with a sizable outperformance on sales, margins and EPS, as well as an increase to guidance that includes a holiday quarter outlook that is better than consensus and the previous outlook, the analyst tells investors in a research note. Baker adds that Ulta remains his top large cap idea due to its recession resistant product mix, lack of any inventory glut concerns, and best in class execution.