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On Friday, BMO Capital Markets adjusted its outlook on ULTA Beauty (NASDAQ: ULTA) shares by increasing the price target to $454 from $404, maintaining a Market Perform rating. The stock, currently trading at $485.20 with a market capitalization of $21.91 billion, shows strong financial health according to InvestingPro metrics, earning a "GREAT" overall rating. The adjustment comes after ULTA reported first-quarter sales that surpassed analyst expectations, showing a 4.5% year-over-year increase to approximately $2.848 billion compared to the anticipated $2.794 billion. ULTA’s comparable store sales also saw a 2.9% rise, which is a notable improvement over last year’s 1.6% and well above the modest 0.2% increase projected by analysts.
The growth in comparable store sales was attributed to a 2.3% increase in the average ticket size and a 0.6% rise in the number of transactions. This marks the fifth consecutive quarter of average ticket growth for ULTA, a trend that has continued despite increasingly challenging comparisons. The company maintains strong fundamentals with a healthy current ratio of 1.67 and trades at a P/E ratio of 16.54, reflecting its market position. InvestingPro data reveals 7 additional key insights about ULTA’s financial strength and market position. ULTA’s management noted that while sales started off slightly softer in the first quarter, they picked up momentum in March and April, with this positive trend carrying into May.
In light of the first-quarter performance, ULTA has updated its forecasts, raising the high end of its full-year 2025 sales and comparable store sales guidance. Although the lower ends of the projections remain unchanged, the revised outlook reflects not only the strong results from the first quarter but also a degree of caution regarding the uncertainty in the second half of the year.
BMO’s revised price target suggests a level of confidence in ULTA’s ability to maintain its performance, while the Market Perform rating indicates a view that the stock may trade in line with market or sector averages in the near term. ULTA’s first-quarter results and the optimistic yet cautious outlook for the future have provided a new basis for BMO’s assessment of the company’s stock. For a deeper understanding of ULTA’s valuation and growth prospects, InvestingPro subscribers can access a comprehensive Pro Research Report, which is part of the platform’s coverage of over 1,400 US stocks.
In other recent news, ULTA Beauty has reported strong first-quarter results, prompting several financial firms to adjust their outlooks on the company’s stock. Canaccord Genuity raised its price target to $542, citing a significant earnings beat with adjusted earnings per share (EPS) reaching $6.70, surpassing expectations. The firm highlighted ULTA’s strong sales increase and effective in-store execution as key factors in their optimistic outlook. Similarly, UBS increased its price target to $525, maintaining a Buy rating, and noted ULTA’s solid first-quarter performance and potential for exceeding market expectations.
Telsey Advisory Group also raised its price target to $520, keeping an Outperform rating, following ULTA’s robust performance that led to upward revisions in revenue and EPS forecasts. Piper Sandler, while more cautious, raised its target to $437, maintaining a Neutral rating due to macroeconomic uncertainties. Goldman Sachs increased its target to $473, emphasizing ULTA’s market share gains and the effectiveness of the Ulta Beauty (NASDAQ:ULTA) Unleashed strategy.
Overall, ULTA’s recent financial performance has led to upward revisions in price targets from multiple firms, reflecting confidence in the company’s strategic direction and market position. Despite some caution regarding potential challenges in the latter half of the year, analysts generally see ULTA’s current trajectory as positive.
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