Why Ulta Beauty Is a Still a 'Top Pick' Despite CEO Transition

Key Takeaways - Ulta Beauty announced CEO Dave Kimbell's retirement, but JPMorgan analysts do not view the transition as negative for the company [1] - JPMorgan reiterated Ulta Beauty as a "top pick" with a $480 price target, while the stock was trading at $431.43, after surging 6.7% earlier in the session [1] Financial Performance and Outlook - Ulta Beauty raised its fiscal Q4 comparable sales and operating margin outlook to clarify that the CEO change was unrelated to Q4 performance [2] - A 1% increase in comparable sales and an operating margin slightly above the previously projected range imply Q4 EPS of $7.21, higher than Wall Street's consensus of $6.76 [3] Leadership Transition - CEO Dave Kimbell has been succeeded by COO Kecia Steelman [2]