Ulta Beauty price target raised to $510 from $435 at DA Davidson

DA Davidson analyst Michael Baker raised the firm’s price target on Ulta Beauty (ULTA) to $510 from $435 and keeps a Buy rating on the shares after its Q3 results. The company beat across the board, driven by strength in fragrance and skincare, and while the implied Q4 guidance is below consensus, the Q3 beat and full year guidance raise “more than offset this”, the analyst tells investors in a research note. DA Davidson adds that it “appreciates” the conservative nature of the outlook as there is no need to raise the bar with uncertainty around competitive pressures, even though those pressures may be “easing somewhat soon”.