Ulta Beauty price target raised to $550 from $425 at Jefferies

Jefferies raised the firm’s price target on Ulta Beauty (ULTA) to $550 from $425 and keeps a Hold rating on the shares. Ulta has demonstrated real improvement in fundamentals with new brand launches and improving trends since April, says the analyst, who expects quarterly results to come in above Street estimates and for fiscal year guidance to be raised. However, with the stock up about 30% in the last three months, the firm believes the next leg of growth in share price will require more evidence of fundamental improvement, the analyst tells investors in a preview.