Street Calls of the Week
Investing.com - Canaccord Genuity raised its price target on Ulta Beauty (NASDAQ:ULTA) to $653 from $650 while maintaining a Buy rating following a recent in-person store tour with company executives. The beauty retailer, currently valued at $25.16 billion, is trading near its 52-week high of $572.23, with InvestingPro data showing an impressive 56.33% return over the past year.
The research firm highlighted Ulta’s continued focus on enhancing customer experience through improved merchandising, investments in store associates, a compelling loyalty program, and development of its omni-channel model.
Canaccord noted Ulta’s differentiation from competitors through its strategy of offering products across all price points and providing various in-store salon services, with management reporting the beauty category continues to show resilience with no signs of consumer trade-down or reduced spending.
The firm observed that competitive pressure from Sephora’s expansion between 2021 and present is finally easing, and Ulta now has growth opportunities both domestically through its Beauty Unleased strategy and internationally via Space NK and partnerships in Mexico and the Middle East.
Canaccord raised its fiscal year 2025 earnings per share estimate to $24.32 from $24.04, compared to the Street’s $24.46 and Ulta’s guidance range of $23.85 to $24.30, citing expectations for better profitability on solid sales growth.
In other recent news, Ulta Beauty has made notable strides with its financial and strategic initiatives. UBS has reiterated its Buy rating on Ulta Beauty with a price target of $680, highlighting the strong performance under the company’s new leadership and an improving industry environment. DA Davidson also maintained its Buy rating, setting a price target of $625, and noted the company’s significant presence in recent news following its earnings report in late August. Piper Sandler reaffirmed its Overweight rating with a $590 price target, citing Ulta Beauty’s accelerating comparable sales, with a 6.7% growth in the second quarter marking the best performance in two years.
In terms of expansion, Ulta Beauty has embarked on its first international venture by opening two stores in Mexico. The new locations at Antara Fashion Hall in Mexico City and Galerías Metepec introduce 35 beauty brands to the Mexican market, including Ulta Beauty exclusives. These developments reflect the company’s strategic growth efforts and strengthening market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.