Jefferies raises Ulta Beauty stock price target to $550 from $425 on new brand launches

Published 25/08/2025, 21:18
Jefferies raises Ulta Beauty stock price target to $550 from $425 on new brand launches

Investing.com - Jefferies has raised its price target on Ulta Beauty (NASDAQ:ULTA) to $550 from $425 while maintaining a Hold rating on the stock. Currently trading at $524.11, near its 52-week high of $534.10, Ulta has delivered an impressive 44.79% return over the past six months. According to InvestingPro data, 10 analysts have recently revised their earnings estimates upward for the upcoming period.

The investment firm cited new brand launches and improving sales trends since April as factors pointing to potential sales upside versus estimates.

Jefferies expects Ulta’s results to exceed Wall Street’s estimates and anticipates the company will raise its full-year guidance.

Despite the positive outlook, Jefferies noted it would need to see Ulta execute more within its long-term comparable sales range on more normalized comparisons to support further valuation upside.

The firm also expressed concerns about long-term risk of market share loss to online channels, while pointing out that foot traffic data for both Ulta and Sephora shows negative trends on a two-year basis.

In other recent news, Ulta Beauty has been the subject of various significant developments. Barclays upgraded Ulta Beauty’s stock rating from Equalweight to Overweight, citing "rapid and decisive changes" by CEO Kecia Steelman, who assumed leadership in January 2025. Furthermore, UBS increased its price target for Ulta Beauty to $640, maintaining a Buy rating due to strong sales momentum and the anticipation of the upcoming second-quarter earnings report. Meanwhile, William Blair reiterated a Market Perform rating for Ulta Beauty as the company announced plans not to renew its shop-in-shop agreement with Target Corporation, which will end in August 2026. The partnership, initiated in 2021, will continue operations until its conclusion, with Ulta having paused expansions of its Target shop-in-shops earlier this year. Despite the mutual decision to end the partnership, customers can still earn Ulta Beauty Rewards on eligible purchases at Target until the agreement’s expiration. These developments reflect ongoing strategic shifts and analyst expectations surrounding Ulta Beauty.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.