Ulta Beauty price target raised to $475 from $460 at BofA

BofA analyst Lorraine Hutchinson raised the firm’s price target on Ulta Beauty (ULTA) to $475 from $460 and keeps a Neutral rating on the shares after the company announced the appointment of Kecia Steelman as CEO, succeeding Dave Kimbell, and reported that it now expects Q4 comps up modestly and operating margin above the high end of the prior guidance following a strong holiday season. The firm now forecasts Q4 EPS of $7.17, versus a $6.66 prior view, but says that while it is “encouraged by the positive preannouncement,” margins are still implied down 200 basis points year-over-year in Q4 and down 180 points for FY24.