Argus reiterated a Buy rating and $600 per share price target for Ulta Beauty (NASDAQ:ULTA) in a research note to clients on Thursday.
The firm's analysts stated that they have a favorable view of Ulta's business partnerships, loyalty programs, strong customer engagement, and new focus on wellness.
The retailer of cosmetics and fragrances has a "wide range of product offerings and price points should also position it well for potential consumer trade-down in a weak economy, as was experienced this quarter," Argus wrote in its note.
"We also like Ulta's focus on higher-margin luxury products and continued efforts to lower costs," they added. "These efforts, along with the company's new partnership with Target and its UB Media venture, should help boost margins in a more promotional sales environment."
Ulta shares have declined over 12% in the past three months, but it has climbed more than 23% over the past year, currently sitting above $473 per share.