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Investing.com - Piper Sandler has reiterated an Overweight rating on Ulta Beauty (NASDAQ:ULTA) with a price target of $590.00 ahead of the company’s upcoming earnings report on December 4. Currently trading at $547.64, Ulta shares are sitting just 0.96% below their 52-week high of $572.23, reflecting strong market confidence. InvestingPro data shows the stock has delivered an impressive 25.91% return year-to-date.
The firm expects Ulta to report third-quarter comparable sales growth ahead of the company’s guidance of flat to low-single-digit increases. Piper Sandler projects 3% comp growth, in line with consensus estimates, while noting buy-side expectations may be in the mid-single-digit range.
Piper Sandler anticipates Ulta will beat the Street’s earnings per share estimate of $4.59, highlighting that the company has exceeded consensus EPS by an average of 15% over the past four quarters. The firm sees potential upside to analysts’ gross margin estimates due to well-managed promotions and continued benefits from reduced shrink. InvestingPro data reveals Ulta’s impressive diluted EPS of $26.09 over the last twelve months, with a current P/E ratio of 21.08.
The research note suggests Ulta will likely raise its annual EPS guidance of $23.85-$24.30 to the high end of the range rather than exceeding it, given a challenging year-over-year comparison in the fourth quarter.
Piper Sandler observed that Ulta’s Black Friday weekend discounting was similar to last year, while Cyber Monday promotions featured "Up to 40% off" deals compared to "Up to 50% off" last year, which the firm interprets as a sign of business momentum. According to InvestingPro, 11 analysts have recently revised their earnings upward for Ulta’s upcoming report, suggesting growing optimism. InvestingPro subscribers can access Ulta’s comprehensive Pro Research Report, part of the 1,400+ deep-dive analyses that transform complex data into actionable investment intelligence.
In other recent news, Ulta Beauty has been the subject of various analyst updates and company developments. UBS has reiterated its Buy rating on Ulta Beauty, expressing confidence in the company’s expected strong third-quarter performance. The investment firm set a price target of $680.00, highlighting stable demand in the beauty category and a favorable competitive environment. Similarly, Canaccord Genuity maintained a Buy rating, citing Ulta’s successful market share gains through strategic initiatives such as adding new brands and improving store experiences. JPMorgan has also raised its price target for Ulta Beauty to $606.00, maintaining an Overweight rating due to the company’s strong market position and diverse product offerings.
Jefferies adjusted its price target to $565.00, noting Ulta’s strong comparable sales momentum as the holiday season approaches. In terms of expansion, Ulta Beauty announced plans to open its first Middle East store in Kuwait in November 2025. This 15,000-square-foot location will feature over 300 beauty and wellness brands, marking the beginning of Ulta’s regional expansion in partnership with Alshaya Group. These recent developments reflect a period of strategic growth and positive market positioning for Ulta Beauty.
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