Ulta Beauty added to ‘Tactical Outperform’ list at Evercore ISI

Evercore ISI is adding Ulta Beauty (ULTA) to the firm’s “Tactical Outperform” list, arguing that despite strong same-store sales growth trends, a lack of SG&A discipline for several quarters has been “the key driver” of an outsized stock pullback. However, the firm thinks Ulta has embraced the feedback and has two opportunities in the weeks ahead – including a sell-side conference in two weeks and a meet & greet in Orlando on April 15-16 – to offer some guardrails on the SG&A plan, which the firm thinks “will go a long way to calming 1Q EPS fears.” Evercore has an Outperform rating and $675 price target on Ulta shares.