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Investing.com - DA Davidson has raised its price target on Ulta Beauty (NASDAQ:ULTA) to $585.00 from $550.00 while maintaining a Buy rating on the stock. The beauty retailer, currently trading at $517.43 with a market capitalization of $23.26 billion, is approaching its 52-week high of $521.77. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The firm increased its second-quarter 2025 comparable sales estimate for Ulta to 3.5% from 1.5%, significantly above the consensus estimate of 1.1%.
DA Davidson cited four recent data points supporting its outlook, including weekly point-of-sale data, vendor insights from L’Oréal, competitor performance at Sephora, and accelerating back-to-office trends.
The research firm believes Ulta Beauty is benefiting from improving industry trends, increased product newness, and reduced incremental competition in the beauty retail space.
With the revised estimates, DA Davidson continues to classify Ulta as a "Best-of-Breed Bison" name in its coverage universe.
In other recent news, Ulta Beauty has announced the acquisition of British beauty retailer Space NK from Manzanita Capital. While the financial terms were not disclosed, reports suggest the deal could be valued at over £300 million. Space NK operates 83 stores in the UK and Ireland and will continue to function as a standalone subsidiary under its current management. In light of this acquisition, DA Davidson has reiterated its Buy rating on Ulta Beauty, raising the price target from $485 to $550. The firm based its decision on a study comparing Ulta’s best-selling products with those at competitors like Sephora and Amazon (NASDAQ:AMZN). Additionally, Citi has maintained its neutral rating on Ulta Beauty with a $450 price target following the immediate departure of CFO Paula Oyibo. Chris Lialios, with 25 years of experience at Ulta, will temporarily step in as CFO while the company searches for a permanent replacement. These developments reflect Ulta Beauty’s strategic moves and ongoing management changes.
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