Jim Cramer: Ulta Salon Is a Buy Thanks to Goldman Sachs Downgrade

NEW YORK (TheStreet) -- Jim Cramer loves Ulta Salon, Cosmetics & Fragrance (ULTA)  and loves it even more now that its shares are down over 3% Monday after a downgrade from Goldman Sachs.

TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said during CNBC's "Cramer's Stop Trading" segment that this is a great time to buy a stock that is up about 28% for the year to date and has a "fabulous CEO" in Mary Dillon. 

ULTA Chart
Ulta Salon, Cosmetics & Fragrance ULTA data by YCharts

Cramer said he has "bone to pick" with the Goldman analyst because even with the downgrade to hold from buy, the price target was raised to $132 from $122. 

Too many investors previously felt Ulta management only focused on boosting earnings in the short term. But that isn't the case. He noted Ulta is in the midst of a multi-year improvement, which offers investors an opportunity for long-term earnings growth, he said. 

Dillon is a "remarkable" CEO, who has a long-term plan and delivers solid results on a consistent basis. Goldman Sachs should have never downgraded this stock, Cramer concluded. 

--- Written by Bret Kenwell

Follow @BretKenwell

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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