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Investing.com - UBS raised its price target on Ulta Beauty (NASDAQ:ULTA) to $640.00 from $525.00 on Thursday, while maintaining a Buy rating on the beauty retailer’s stock. The company, currently valued at $23.2 billion, is trading near its 52-week high of $534.10, reflecting strong market confidence.
The price target increase comes ahead of Ulta’s second-quarter earnings report on August 28, which UBS believes will serve as a catalyst for further upward estimate revisions and stock appreciation. According to InvestingPro, 8 analysts have recently revised their earnings expectations upward for the upcoming period.
UBS expects Ulta’s same-store sales growth to reach 4.0% for the quarter, significantly above the consensus estimate of 2.3% and in line with buy-side expectations of approximately 4-5%.
The firm views this anticipated sales performance as evidence that Ulta’s strategic investments to revitalize its core U.S. store business are yielding positive results.
UBS also predicts Ulta will modestly increase its fiscal year 2025 earnings outlook following strong second-quarter results, potentially setting the stage for additional positive revisions if sales momentum continues.
In other recent news, Ulta Beauty and Target Corporation (NYSE:TGT) have announced they will not renew their shop-in-shop partnership when the current agreement expires in August 2026. This collaboration, which began in 2021, will continue to operate in Target stores and on Target.com until its conclusion. Despite the partnership’s end, customers with linked rewards accounts can still earn Ulta Beauty Rewards on eligible purchases at Target locations until the agreement ends. In related developments, Raymond (NSE:RYMD) James raised its price target for Ulta Beauty to $580, maintaining an Outperform rating, citing Ulta’s acquisition of Space NK as a key factor for international expansion. DA Davidson also increased its price target for Ulta Beauty to $585, maintaining a Buy rating and raising its second-quarter 2025 comparable sales estimate to 3.5%, significantly above the consensus estimate. William Blair reiterated a Market Perform rating on Ulta Beauty, following the announcement of the partnership’s end with Target. These recent developments reflect a mix of strategic changes and positive analyst outlooks for Ulta Beauty.
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