Citi reiterates neutral rating on Ulta Beauty stock amid CFO departure

Published 25/06/2025, 18:36
Citi reiterates neutral rating on Ulta Beauty stock amid CFO departure

Investing.com - Citi maintained its neutral rating and $450.00 price target on Ulta Beauty (NASDAQ:ULTA) following the announcement of CFO Paula Oyibo’s immediate departure from the company. According to InvestingPro data, the company maintains excellent financial health with a "GREAT" overall score, supported by a healthy current ratio of 1.67.

Chris Lialios, SVP-Controller with 25 years of experience at Ulta, will serve as interim CFO while the company conducts an external search for a permanent replacement, according to Citi’s research note.

The management team is seeking a more seasoned public company CFO with international market experience to support Ulta’s planned expansion into Mexico and the Middle East beginning next year.

Ulta Beauty management reiterated its fiscal 2025 guidance following the CFO transition announcement, which Citi noted might disappoint some investors who had anticipated a guidance increase after the second quarter.

Citi does not view the lack of a guidance raise as a negative signal about the business, but rather as conservatism given uncertainty about macroeconomic conditions in the second half of the year. For deeper insights into Ulta Beauty’s international expansion potential and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, Ulta Beauty has experienced several notable developments. The company announced the departure of Chief Financial Officer Paula Oyibo, with Chris Lialios stepping in as interim CFO. Meanwhile, Ulta Beauty reaffirmed its fiscal 2025 guidance, projecting comparable store sales growth between 0% and 1.5%, an operating margin between 11.7% and 11.8%, and diluted earnings per share ranging from $22.65 to $23.20. William Blair reiterated a Market Perform rating on Ulta Beauty, citing limited upside potential due to current stock valuations. BofA Securities raised its price target for Ulta Beauty to $500, maintaining a Neutral rating, and noted potential margin pressure in the latter half of the fiscal year. Evercore ISI maintained its Outperform rating with a $490 price target, regarding the search for a new CFO as a positive move. Loop Capital increased its price target to $510, highlighting a decrease in Ulta’s pricing premium compared to competitors and improving consumer sentiment. These developments reflect a mix of strategic changes and financial projections that are important for investors to monitor.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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