Ulta Beauty price target raised to $420 from $385 at BMO Capital

BMO Capital raised the firm’s price target on Ulta Beauty (ULTA) to $420 from $385 but keeps a Market Perform rating on the shares. The company reported a top- and bottom-line beat as better comps, gross margins, and expenditures drove a “very healthy” EPS beat, the analyst tells investors in a research note. BMO adds however that while Ulta offers a compelling business in an attractive sector, the firm remains sidelined pending greater visibility on competition and distribution to determine the sales and margin floors.