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Investing.com - Canaccord Genuity raised its price target on Ulta Beauty (NASDAQ:ULTA) to $630.00 from $600.00 while maintaining a Buy rating ahead of the company’s second-quarter earnings report. The new target aligns with broader analyst optimism, as InvestingPro data shows 11 analysts have recently revised their earnings expectations upward, with price targets ranging from $385 to $640.
The beauty retailer is scheduled to release its Q2 2025 financial results on August 28 after market close, with Canaccord citing resilience in the beauty category and improved merchandising efforts that are helping Ulta recapture market share. The company’s strong financial health is evident in its impressive 50% return on equity and healthy current ratio of 1.67, according to InvestingPro data.
Canaccord also noted that competitive pressure from Sephora’s expansion appears to be diminishing, providing additional support for the price target increase.
The research firm highlighted several strategic initiatives implemented by CEO Kecia Steelman in her first year, including the acquisition of U.K. retailer Space NK, which operates 83 stores across the United Kingdom and Ireland, and plans to exit Ulta’s partnership with Target in August 2026.
Canaccord expects Ulta to announce additional growth initiatives throughout the year, including new brand additions, the development of a third-party beauty marketplace, expansion of UB Media, and international growth through partnerships in Mexico and parts of the Middle East.
In other recent news, Ulta Beauty has seen several notable developments. UBS raised its price target for Ulta Beauty to $640 from $525, maintaining a Buy rating, citing strong sales momentum and anticipating that the upcoming second-quarter earnings report could lead to further positive revisions. Barclays upgraded Ulta Beauty’s stock rating to Overweight, increasing the price target to $589 from $518, following significant changes by CEO Kecia Steelman since January 2025. Jefferies also increased its price target to $550 from $425, highlighting new brand launches and improving sales trends as potential drivers for sales growth. Meanwhile, Ulta Beauty announced it would not renew its shop-in-shop agreement with Target , set to end in August 2026, after pausing expansions in April. William Blair reiterated a Market Perform rating for the company amidst this decision, which was mutually agreed upon by both Ulta and Target. The partnership, which began in 2021, will continue until its expiration, with 611 locations established by the first quarter of 2025.
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