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On Friday, Jefferies analyst Ashley Helgans adjusted the price target for ULTA Beauty (NASDAQ: ULTA) shares, reducing it to $354 from the previous target of $412. Despite the lower price target, the firm maintained its Hold rating on the company’s stock. The revision followed ULTA Beauty’s fourth-quarter earnings, which surpassed expectations. According to InvestingPro data, the stock has declined significantly, trading near its 52-week low of $309, with a market capitalization of $14.58 billion. InvestingPro analysis suggests the stock may be undervalued at current levels. However, concerns about macroeconomic and competitive pressures led to a full-year guidance that fell short of analysts’ estimates.
ULTA Beauty reported expectations for flat to slightly positive comparable store sales growth, specifically in the range of 0% to 1%, which is marginally below the consensus of a 1.2% increase. Moreover, the company’s forecast for operating margin percentage stands at 11.7% to 11.8%, slightly under the estimated 11.9%. These projections reflect the challenges ULTA Beauty anticipates in the coming year, including potential market share losses.
The company has acknowledged that brands with increased distribution negatively impacted the business in the fourth quarter. ULTA Beauty also recognizes that it may continue to lose market share throughout 2025, as it expects the strategic initiatives and investments to require time before they positively influence the company’s performance.
In summary, while ULTA Beauty’s recent quarterly results have been better than anticipated, the company’s outlook suggests a cautious approach due to the anticipated competitive and economic headwinds. The new price target set by Jefferies reflects these considerations as ULTA Beauty prepares to navigate the coming fiscal year.
In other recent news, Ulta Beauty (NASDAQ:ULTA) has reported impressive fourth-quarter results for 2025, with earnings per share (EPS) reaching $8.46, significantly surpassing the forecasted $7.11. The company also reported revenue of $3.5 billion, slightly above the anticipated $3.46 billion. This robust financial performance was followed by a 5.91% increase in Ulta’s stock during aftermarket trading. Despite these strong results, DA Davidson has adjusted its price target for Ulta Beauty to $415 from $510, maintaining a Buy rating, while Evercore ISI reiterated its Outperform rating with a $465 target. These adjustments come amid Ulta’s recent financial performance, which exceeded sales and profit expectations but issued guidance that was below consensus.
Ulta Beauty has announced strategic plans to expand its brand offerings, including the exclusive launch of Beyoncé’s haircare line. The company has also launched 40 new brands in 2024 and plans further expansions. Additionally, Ulta expects the U.S. beauty category to grow by 2-4% this year. Analyst Michael Baker from DA Davidson noted that Ulta faces competitive pressures from major players like Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT), yet sees potential for growth and recovery in value. Evercore ISI has raised its EPS estimate for Ulta Beauty for the fiscal year 2025 to $24.00, reflecting confidence in the company’s conservative guidance. These developments indicate a strategic focus on growth initiatives and market expansion for Ulta Beauty.
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