Ulta Beauty (ULTA) is likely to post another solid all-round delivery in fiscal Q1, but management could maintain conservative outlook amid macroeconomic volatility, Oppenheimer said in a Tuesday research report. The company is due to report fiscal Q1 results on June 2.

The stock offers a lucrative entry point amid a still attractive beauty industry backdrop as well as traction with key company initiatives, according to the note.

The brokerage said it expects Q1 EPS of at least $6.88, based on a 4% comp growth.

The company's long-term prospects look favorable due to its differentiated offerings, superior merchandisers with proven innovation track record, potential to deliver above-average growth rates in retail, and attractive valuation, analysts wrote.

The brokerage had an outperform rating on the stock and price target of $650 per share.

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