Raymond James raises Ulta Beauty stock price target to $580 on international expansion

Published 14/08/2025, 11:36
Raymond James raises Ulta Beauty stock price target to $580 on international expansion

Investing.com - Raymond James raised its price target on Ulta Beauty (NASDAQ:ULTA) to $580 from $500 while maintaining an Outperform rating on Thursday. The stock, currently trading at $532.71, has shown remarkable strength with a 61.89% return over the past year and is trading near its 52-week high of $534.10.

The firm cited Ulta’s acquisition of Space NK as a catalyst that will accelerate the company’s international expansion plans, alongside growth in its Wellness category and ongoing executive changes including a search for a new CFO. According to InvestingPro data, the company maintains strong financial health with a "GREAT" overall score, operating with moderate debt levels and liquid assets exceeding short-term obligations.

Raymond James noted several positive developments since Kecia Steelman was appointed CEO earlier this year, including a revamped management team, progress on the Beauty Unleashed initiative, and increased investments across the business.

The external search for a new CFO is expected to bring in an executive with both public company and international experience, supporting Ulta’s growth strategy.

While Ulta’s valuation has largely recovered to its historical average, Raymond James sees potential for further earnings upside that could drive continued outperformance in the stock. Trading at a P/E ratio of 20.72, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Discover 8 more exclusive ProTips and comprehensive financial analysis in the Pro Research Report.

In other recent news, Ulta Beauty has made significant strides with the acquisition of British beauty retailer Space NK from Manzanita Capital. This move marks an expansion into the UK market, with Space NK operating 83 stores in the UK and Ireland, alongside an e-commerce platform. The financial terms of the transaction have not been disclosed, but reports suggest the deal is valued at over £300 million. Following the acquisition, Space NK will continue to operate as a standalone subsidiary under its current management team. In addition to this strategic expansion, DA Davidson has raised its price target for Ulta Beauty to $585, citing strong comparable sales estimates for the second quarter of 2025. The firm has also maintained its Buy rating on Ulta Beauty, reflecting confidence in the company’s growth prospects. Previously, DA Davidson had increased its price target from $485 to $550 based on a study comparing Ulta’s best sellers with competitors. These developments highlight Ulta Beauty’s ongoing efforts to strengthen its market position both domestically and internationally.

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