Canaccord Genuity raises Ulta Beauty stock price target on strong Q2 results

Published 29/08/2025, 12:14
Canaccord Genuity raises Ulta Beauty stock price target on strong Q2 results

Investing.com - Canaccord Genuity raised its price target on Ulta Beauty (NASDAQ:ULTA) stock to $650.00 from $630.00 on Friday, while maintaining a Buy rating following the company’s strong second-quarter performance. The new target represents the highest among Wall Street analysts, with InvestingPro data showing 11 analysts recently revising their earnings expectations upward for the upcoming period.

The beauty retailer, now commanding a market capitalization of $23.89 billion, reported second-quarter comparable sales growth of 6.7% year-over-year, significantly outpacing analyst expectations of approximately 2.9%. Overall sales increased 9.3% compared to the same period last year, driven by comparable sales growth, contributions from the Space NK acquisition, and new store openings.

Ulta Beauty posted an operating margin of 12.6% for the quarter, exceeding Street estimates of 11.4%. The company reported adjusted earnings per share of $5.78, beating analyst projections of $5.10. InvestingPro analysis reveals the company maintains a GREAT financial health score, with particularly strong marks in profitability metrics.

Canaccord Genuity noted that Ulta experienced "broad-based strength across categories" during the quarter, which the firm attributed to effective execution of the company’s Ulta Beauty Unleashed strategy. The strong performance reportedly led to market share gains in the beauty sector.

Following the robust quarterly results, Ulta Beauty management raised its guidance for annual sales, comparable store sales, and earnings, citing continued momentum and additional contributions expected from the Space NK acquisition.

In other recent news, Ulta Beauty reported impressive results for the second quarter of fiscal year 2026, exceeding both earnings and revenue forecasts. The company achieved an earnings per share (EPS) of $5.78, surpassing the predicted $4.99 by 15.83%. Revenue reached $2.79 billion, which was 4.89% higher than expected. These results reflect strong sales performance for the quarter. While the stock price movement is not the focus here, the positive earnings report indicates investor confidence. No recent mergers or acquisitions were reported for Ulta Beauty. Additionally, there have been no recent analyst upgrades or downgrades for the company. These developments highlight Ulta Beauty’s current financial health and market position.

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