Ulta Beauty price target raised to $550 from $460 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Ulta Beauty (ULTA) to $550 from $460 and keeps an Overweight rating on the shares. The firm sees room for multiple expansion and upside if comps accelerate to 2%-plus, which it says after earnings “is starting to play out” with better than expected Q1 comp growth of 2.9% due to the effectiveness of Ulta’s “Unleashed” plan. While the consumer environment remains dynamic, the firm thinks there is further upside from here if current comp and share gain momentum can be sustained, the analyst tells investors.