Oppenheimer analyst Rupesh Parikh notes that Warren Buffett’s Berkshire Hathaway (BRK.A) has disclosed a new stake of 690K shares in Ulta Beauty (ULTA). Shares are indicated up about 10% to the high-$360s after market. The firm views this development as a vote of confidence for the company’s longer-term prospects and a further validation of Ulta’s significantly discounted valuation. With shares now trading back towards the high $360s and the potential for a miss and guide-down with its Q2 report on August 29, Oppenheimer says it would still be positioned to take advantage of dips from here. The setup is now even trickier for shorter-term players, the firm adds. Oppenheimer has an Outperform rating on Ulta with a price target of $450 on the shares.
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