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Investing.com - Piper Sandler maintained its Overweight rating and $590 price target on Ulta Beauty (NASDAQ:ULTA) following a meeting with the company’s President and CEO Kecia Steelman. According to InvestingPro data, 15 analysts have recently revised their earnings expectations upward for the upcoming period, with analyst targets ranging from $405 to $680.
The firm noted that Ulta Beauty has experienced accelerating comparable sales in the first half of 2025, with second-quarter comparable sales growth of 6.7% representing the best performance in two years.
Piper Sandler views the risk-return profile as "compelling" with the stock trading at 19 times estimated 2026 earnings, which the firm believes could trend higher. The company reportedly expressed satisfaction with August performance and has implemented a tighter go-to-market approach for its current 21 Days of Beauty event.
The research note addressed investor concerns about Ulta’s ongoing investment cycle and potential lack of flow-through in the second half of 2025, which have contributed to the stock’s underperformance since its latest earnings report.
Ulta Beauty is making progress in its search for a new CFO, seeking a "strategic thought leader" with international experience, while retail experience is considered a beneficial but not essential qualification.
In other recent news, Ulta Beauty has made significant strides with its international expansion by opening its first physical stores in Mexico. The company launched its first location at Antara Fashion Hall in Mexico City, followed by a second store at Galerías Metepec. This expansion introduces 35 beauty brands to the Mexican market, including Ulta Beauty exclusives and local Mexican brands. Additionally, Ulta Beauty reported strong second-quarter performance with a 6.7% increase in comparable sales, surpassing market expectations of approximately 5%.
Analyst firms have responded positively to these developments. UBS raised its price target for Ulta Beauty to $680, maintaining a Buy rating, citing the company’s robust quarterly results. DA Davidson also increased its price target to $625, acknowledging Ulta’s recovery from a previous period of sales weakness. TD Cowen adjusted its price target to $600, noting the significant growth in ticket size and traffic. Raymond James raised its target to $605, highlighting the company’s highest comparable sales growth in eight quarters. These recent developments reflect Ulta Beauty’s strong performance and strategic expansion efforts.
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