By Sam Boughedda
Investing.com - An Oppenheimer analyst maintained an Outperform rating and $485 per share price target on Ulta Beauty (NASDAQ:ULTA) in a note to clients Monday, saying it "remains positioned for more beats and raises."
The analyst said the firm sees more upside in Ulta Beauty shares from here, and they expect another beat and raise when the company reports earnings on August 25.
"Recent beauty data points suggest continued strength in ULTA's core categories (makeup, fragrances, and skincare), more than offsetting more difficult trends in hair tools. We expect a comp increase of at least
9-10% in line with a Street figure of 9.7%, but see less upside potential vs. recent quarters," said the Oppenheimer analyst.
Ulta shares have gained 2.45% Monday, trading around the $405.17 mark. They are down just 2.3% in 2022.
"ULTA shares trade at just ~18x our FY23 earnings estimate. Calling prints has become much harder lately, but we continue to see an attractive outperformance case. ULTA remains a top pick, and we would take advantage of any dislocations on the report," concluded the analyst.