Ulta Beauty (ULTA – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Michael Binetti from Evercore ISI maintained a Buy rating on the stock and has a $490.00 price target.
Michael Binetti has given his Buy rating due to a combination of factors, including Ulta Beauty’s recent performance and future prospects. Ulta Beauty’s fourth-quarter results surpassed expectations, with same-store sales and operating margins showing positive trends. This performance was bolstered by the strong growth in the Prestige Beauty category, particularly in fragrances, which outpaced general merchandise growth during the holiday season.
Looking forward, despite some concerns about the beauty industry’s broader trends, Ulta Beauty is expected to maintain its guidance for 2025, with modest growth in same-store sales and stable EBIT margins. Although the first quarter may present challenges, the company’s overall strategic positioning and resilience in a competitive market contribute to a positive outlook. This combination of past performance and future potential supports Binetti’s Buy rating for Ulta Beauty’s stock.
In another report released on March 10, Telsey Advisory also maintained a Buy rating on the stock with a $500.00 price target.