Nevertheless, for the short-term, specifically the next 12 months, the stock is perceived to be in a more vulnerable position. Without an upward revision of estimates, the analyst finds it challenging to foresee significant upside potential. The recommendation is to stay on the sidelines, with the price target based on an unchanged ~16x fiscal year 2025 P/E multiple and marginally higher forward estimates.
For deeper insights into ULTA's valuation and financial health, including 7 additional ProTips and comprehensive financial metrics, check out the full research report available on InvestingPro. For deeper insights into ULTA's valuation and financial health, including 7 additional ProTips and comprehensive financial metrics, check out the full research report available on InvestingPro.
Nevertheless, for the short-term, specifically the next 12 months, the stock is perceived to be in a more vulnerable position. Without an upward revision of estimates, the analyst finds it challenging to foresee significant upside potential. The recommendation is to stay on the sidelines, with the price target based on an unchanged ~16x fiscal year 2025 P/E multiple and marginally higher forward estimates.
For deeper insights into ULTA's valuation and financial health, including 7 additional ProTips and comprehensive financial metrics, check out the full research report available on InvestingPro.
ULTA's upcoming earnings report is not expected to necessitate a beat or raise for the stock to perform well. However, the analyst noted that there needs to be a build-up of confidence regarding the achievability of ULTA's full-year earnings per share (EPS) guidance. There are concerns about whether this confidence will materialize, given considerations around profit margins and the stock's recent price movement.
ULTA shares have seen an increase, with the next twelve months price-to-earnings (P/E) ratio reaching levels previously seen in spring 2024 and the stock price hitting the upper end of the $350-$400 range it has fluctuated within. The analyst suggests that for investors with a multi-year horizon, ULTA could be a solid purchase, as a recovery for the company is deemed probable.
Nevertheless, for the short-term, specifically the next 12 months, the stock is perceived to be in a more vulnerable position. Without an upward revision of estimates, the analyst finds it challenging to foresee significant upside potential. The recommendation is to stay on the sidelines, with the price target based on an unchanged ~16x fiscal year 2025 P/E multiple and marginally higher forward estimates.
In other recent news, ULTA Beauty has been the focus of several analyst adjustments. Canaccord Genuity increased ULTA's price target to $476, maintaining a buy rating, while William Blair downgraded the company's shares from Outperform to Market Perform. JPMorgan, however, maintained an Overweight rating on ULTA, setting a price target of $472. The firm noted an uptick in beauty product sales and anticipates a slight decrease in ULTA's comparable store sales for the third quarter of 2024.
Citi reaffirmed its Neutral stance on ULTA shares, citing near to medium-term challenges due to slower category growth and increased competition. BMO Capital also reiterated a Market Perform rating and a $385.00 price target for ULTA.
In terms of financial developments, ULTA plans to increase its store count by 200 over the next three years and has announced a new $3 billion share repurchase authorization. Analysts' consensus for ULTA's 2025 earnings per share seems to be converging around $23, slightly below the prior consensus of $24.60.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.