Ulta Beauty price target raised to $575 from $510 at BofA

BofA raised the firm’s price target on Ulta Beauty to $575 from $510 and keeps a Neutral rating on the shares. For Q4, the firm model’s comps of 2%. Looking to FY24, the firm notes that Ulta’s algorithm calls for 3%-5% comps and 14-15% operating margin, but BofA thinks management could guide somewhat more cautiously on margins to reflect continued SG&A investment and promotional normalization. The firm thinks long term sales opportunities are balanced by near-term comp and margin pressure, the analyst added in a Q4 preview note.