UBS Group Raises Price Target for Ulta Beauty Stock

Ulta Beauty (NASDAQ:ULTA) recently received positive news from UBS Group, which upgraded its price target for the beauty retailer. In a report released on Friday, analysts at UBS increased their price objective from $470.00 to $490.00, maintaining a "buy" rating for the company's stock. This new target price suggests that there is a potential upside of approximately 14.44% from Ulta's current trading price.

Recent Analyst Activity on Ulta Beauty

Ulta Beauty has attracted attention from several other research firms as well. Oppenheimer recently raised its price target from $435.00 to $505.00 and assigned an "outperform" rating to the stock. Canaccord Genuity Group upped their price target from $442.00 to $476.00, also issuing a "buy" rating. Additionally, DA Davidson increased their target from $435.00 to $510.00 with a "buy" rating. However, not all analysts are optimistic; TD Cowen lowered its target price from $390.00 to $380.00 and assigned a "hold" rating. Wells Fargo & Company also increased its target from $300.00 to $350.00 but maintained an "underweight" rating on the stock.

Stock Performance Overview

On Friday, shares of ULTA traded up by $35.30, reaching a price of $428.17. A substantial volume of 3,414,562 shares changed hands, which is significantly higher than the average volume of 980,766 shares. Over the past year, Ulta Beauty has seen its stock range from a low of $318.17 to a high of $574.76. The company currently has a market capitalization of $20.17 billion and a price-to-earnings (P/E) ratio of 17.11, indicating its market valuation relative to earnings.

Latest Earnings Report

Ulta Beauty recently announced its earnings results on December 5th, reporting earnings per share (EPS) of $5.14 for the quarter. This figure exceeded analysts' consensus estimate of $4.45 by a significant $0.69. The company's revenue for the quarter was reported at $2.53 billion, again surpassing the consensus estimate of $2.50 billion. The firm achieved a net margin of 10.68% and a remarkable return on equity of 54.02%. Year-over-year, Ulta's revenue increased by 1.7%, demonstrating steady growth in a competitive market.

Institutional Investment in Ulta Beauty

Several institutional investors have recently adjusted their stakes in Ulta Beauty. For example, CX Institutional increased its holdings by 107.9%, now owning 867 shares worth approximately $335,000. Optimum Investment Advisors also raised its stake by 95.2%, acquiring more shares during the same period. In total, 90.39% of Ulta’s stock is held by institutional investors, reflecting strong institutional interest.

About Ulta Beauty

Ulta Beauty, Inc. is a leading specialty beauty retailer in the United States. The company provides a wide range of branded and private label beauty products. These include cosmetics, fragrances, haircare, skincare, and salon products, accessible through their physical stores and online platforms.

UBS, Price, Stock