In a report released yesterday, Susan Anderson from Canaccord Genuity maintained a Buy rating on Ulta Beauty (ULTA – Research Report), with a price target of $526.00.
Susan Anderson’s rating is based on Ulta Beauty’s recent financial performance and strategic initiatives. The company reported better-than-expected results for the fourth quarter, with sales and earnings surpassing estimates. This performance is attributed to effective management strategies that have successfully attracted consumers back to the brand, coupled with strong demand in the beauty sector.
Furthermore, the new CEO, Kecia Steelman, has introduced the ‘Ulta Beauty Unleashed’ plan, which aims to drive sustainable growth and operational improvements. The plan focuses on enhancing core business growth, expanding new business areas, and streamlining operations. Despite some challenges, such as competition in the prestige category, the company’s proactive measures, including the introduction of new brands and strategic promotions, position it well to regain and increase market share. Consequently, Anderson maintains a Buy rating, albeit with a slightly reduced price target due to anticipated short-term earnings pressure from increased investments.
In another report released on March 12, Evercore ISI also maintained a Buy rating on the stock with a $465.00 price target.
ULTA’s price has also changed moderately for the past six months – from $378.340 to $314.470, which is a -16.88% drop .