Analyst Upgrades: Ulta Salon, Cosmetics & Fragrance, Inc., Vivint Solar Inc, and Veeva Systems Inc

Analysts upwardly revised their ratings and price targets on Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA), Vivint Solar Inc (VSLR), and Veeva Systems Inc (VEEV)

Kirra Fedyszyn
May 27, 2016 at 10:07 AM
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Analysts are weighing in on cosmetics retailer Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), alternative energy stock Vivint Solar Inc (NYSE:VSLR), and software solutions provider Veeva Systems Inc (NYSE:VEEV). Here's a quick roundup of today's bullish brokerage notes on ULTA, VSLR, and VEEV.

  • ULTA reported first-quarter earnings well above analyst estimates, bringing the stock no fewer than 10 price-target hikes. Evercore ISI set the loftiest target, at $280 -- a 19.5% premium over the shares' current value of $234.37. In fact, the stock has already tacked on 9.7% this morning, tagging a fresh all-time high of $237.53 along the way. Ulta Salon, Cosmetics & Fragrance, Inc. has added 50% year-over-year, and near-term options traders have displayed a penchant for the stock's calls. Specifically, ULTA's Schaeffer's put/call open interest ratio (SOIR) of 0.62 currently sits lower than 76% of all comparable readings taken in the past year.

  • VSLR has soared 17.5% to trade at $3.09 after Deutsche Bank -- which cut its outlook on this sector peer -- upgraded the stock's rating to "buy" from "hold," and increased its price target to $7.50 from $3.50. The brokerage firm said the current stock price doesn't adequately reflect the value of the solar issue's operating assets, adding, "we believe the company remains in a strong position to achieve its 2016 installation targets." The new price target represents a 143% premium over Vivint Solar Inc's current value. That said, the shares have shed 68% in 2016 alone, and hit a record low of $2.16 just two weeks ago. VSLR could stand to benefit from an unwinding of pessimism among traders. Short interest on the stock climbed by 27.2% during the most recent two-week reporting period, and now represents nearly 42% of VSLR's total float. At average daily volumes, it would take about a week to cover all of these bearish bets -- potential fuel to keep VSLR's recent rally alive.

  • VEEV received six price-target hikes, ranging from $31 to $40, after the company reported stronger-than-expected first-quarter earnings. The shares are up 8.8% at $32.39 on the results, and earlier touched a new annual high of $32.69. This rally may not be what options traders had been hoping for. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Veeva Systems Inc holds a 50-day put/call volume ratio of 1.11 -- higher than 70% of the past year's readings.
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