Ulta Beauty Inc. shares are up 3% in Friday premarket trading after the company was upgraded to buy from neutral at Goldman Sachs. The price target was cut to $310 from $321. Analysts say they're "positive" after a recent sell-off and same-store sales growth that they call "sector-leading." Moreover, Goldman thinks the company won't be impacted by Amazon.com Inc. "We do not believe price competition will derail Ulta's core value proposition, or that Amazon yet offers a compelling alternative to the consumer," the note said. With a focus on convenient locations, an assortment that mixes mass and prestige items, and service rather than price, Goldman analysts "expect continued share gains, reflecting incremental sales captured from department stores, upside from the rollout of new brands and boutiques, and growth in Ulta's membership program, also a powerful source of valuable data." Ulta shares are up 1% for the year so far, while the S&P 500 index is up 9.3% for the period.
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