Ulta Beauty stock price target maintained at $550 by Jefferies

Published 16/10/2025, 10:42
Ulta Beauty stock price target maintained at $550 by Jefferies

Investing.com - Jefferies has reiterated its Hold rating on Ulta Beauty (NASDAQ:ULTA) with a price target of $550.00, following the launch of the company’s new marketplace platform. The beauty retailer, currently valued at $24.15 billion, trades at a P/E ratio of 20.6x. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The beauty retailer recently introduced UB Marketplace on its website and mobile app, creating a curated platform that features more than 100 new brands through an invitation-only model.

The marketplace is fully integrated with Ulta’s existing website infrastructure, with a key operational difference being that sellers will fulfill orders directly rather than Ulta handling the logistics.

Despite the innovation and expanded product offerings the marketplace provides, Jefferies expressed skepticism about the platform’s ability to significantly impact Ulta’s competitive position.

Specifically, Jefferies does not believe the marketplace "will generate the momentum needed to reverse ongoing sales leakage to Walmart and Amazon as both continue to expand their beauty offerings."

In other recent news, Ulta Beauty has launched UB Marketplace, a curated third-party platform available on ulta.com and the Ulta Beauty app. This new marketplace, powered by Mirakl’s technology, features 100 beauty and wellness brands, with plans to expand over the next 12-18 months. In analyst updates, Canaccord Genuity has increased its price target for Ulta Beauty to $653, maintaining a Buy rating, following a store tour that highlighted enhancements in customer experience and omni-channel development. UBS has also reiterated its Buy rating on Ulta Beauty, setting a price target of $680 due to strong performance from the new leadership team and improving industry conditions. TD Cowen has identified Ulta Beauty as a key player in the evolving AI-driven retail landscape, noting increased referrals from ChatGPT.com. These developments indicate a focus on innovation and strategic growth for Ulta Beauty in the competitive beauty retail sector.

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