Ulta Beauty Inc (NASDAQ:ULTA) is a prominent player in the beauty retail industry, offering a wide range of cosmetics, skincare, and haircare products. The company operates numerous stores across the United States, providing a unique shopping experience with both high-end and affordable beauty products. Ulta competes with other major retailers like Sephora and department stores, striving to maintain its market position.
On March 14, 2025, Telsey Advisory maintained its "Outperform" rating for ULTA, suggesting confidence in the stock's potential. At the time, ULTA was priced at approximately $357.48. This decision to hold the stock aligns with the company's recent performance, as highlighted by its fourth-quarter FY24 earnings that exceeded expectations, leading to a notable rise in its share price.
Despite the positive earnings report, Ulta's FY25 guidance fell short of consensus estimates. However, the company projected favorable outcomes for comparable sales and operating margins, with expectations between 11.7% and 11.8%. This indicates a cautious yet optimistic outlook for the upcoming fiscal year, despite challenges in the prestige segment where market share was lost.
Analysts have mixed views on ULTA's future performance. Goldman Sachs analyst Kate McShane maintained a Neutral rating, adjusting the price target from $392 to $384. Similarly, Stifel analyst Mark S. Astrachan reiterated a Hold rating, lowering the price target from $475 to $400. Both analysts acknowledged Ulta's strong fourth-quarter results, with an EBIT of $516 million, but remain cautious about the company's future prospects.
Currently, ULTA is trading at $357.48, reflecting a significant increase of $43.01, or 13.68%. The stock has fluctuated between a low of $330.17 and a high of $359.82 today. Over the past year, ULTA has seen a high of $546.58 and a low of $309.01. With a market capitalization of approximately $16.58 billion and a trading volume of 3,367,548 shares, ULTA remains a key player in the beauty retail sector.
