Morgan Stanley Hikes Ulta's Price Target To $135

Analysts at Morgan Stanley on Friday hiked Ulta Salon Cosmetics & Fragrance Inc.'s stock price target to $135 from $132 in response to robust quarterly earnings. "We continue to view ULTA as a disruptive category killer that should continue to take share in the beauty retail space," the analysts said in a note to investors. Ulta late Thursday reported third-quarter earnings of $59.1 million, or 91 cents a share, up from $45.4 million, or 70 cents a share, a year earlier. Revenue increased 21% to $745.7 million. Comparable sales rose 9.5%. Shares of Ulta rose 3.5% to $130.09.