UBS Group Raises Price Target for Ulta Beauty Stock

Analysts at UBS Group have recently increased their price target on Ulta Beauty (NASDAQ:ULTA) from $470.00 to $490.00. This new price target was announced in a report that was released on Friday, which also included a "buy" rating for the specialty retailer's stock. The revised price objective suggests a potential upside of 14.44% from the current trading price of Ulta Beauty's shares.

In addition to UBS Group, other research firms have also provided updates on Ulta Beauty. For instance, Oppenheimer raised its price target from $435.00 to $505.00, while maintaining an "outperform" rating. Similarly, Canaccord Genuity Group increased its price target from $442.00 to $476.00 with a "buy" rating. Furthermore, DA Davidson adjusted its price objective from $435.00 to $510.00, also holding a "buy" rating.

While many analysts are optimistic about Ulta's stock, TD Cowen has decreased its target price from $390.00 to $380.00, marking a "hold" rating for the retailer. Meanwhile, Wells Fargo & Company raised their price target from $300.00 to $350.00, though they have given the stock an "underweight" rating.

According to the latest market data, two analysts rate Ulta Beauty with a sell rating, twelve have a hold rating, and another twelve have issued a buy rating. Overall, the company maintains a consensus rating of "Hold" along with an average price target of $442.46, as reported by MarketBeat.com.

Recent Stock Performance

On Friday, shares of Ulta Beauty traded up by $35.30, bringing the price to $428.17. Approximately 3,414,562 shares were exchanged during the day, significantly higher than the company's average trading volume of 980,766 shares. The stock's fifty-day simple moving average stands at $373.67, while the 200-day moving average is at $376.39. Over the past year, Ulta Beauty's stock has reached a low of $318.17 and a high of $574.76, reflecting a market capitalization of $20.17 billion and a price-to-earnings ratio of 17.11.

Earnings Overview

Ulta Beauty recently announced its earnings results on December 5th. The company reported earnings of $5.14 per share for the quarter, which surpassed the consensus estimate of $4.45 by $0.69. Revenue for the quarter totaled $2.53 billion, which also exceeded expectations of $2.50 billion. The company achieved a net margin of 10.68% and a return on equity of 54.02%. Year-over-year revenue growth was reported at 1.7%, with earnings per share slightly up from $5.07 in the same quarter last year. Analysts predict that Ulta Beauty will report earnings of 23.07 per share for the current fiscal year.

Investment Activity

Several institutional investors have recently adjusted their stakes in Ulta Beauty. For example, CX Institutional raised its holdings by 107.9%, now owning 867 shares valued at $335,000. Optimum Investment Advisors also increased its stake by 95.2%, owning 205 shares valued at $79,000. Gateway Investment Advisors LLC and Czech National Bank have similarly ramped up their investments, reflecting strong interest from institutional investors, which collectively own around 90.39% of the stock.

About Ulta Beauty

Ulta Beauty, Inc operates as a major specialty retailer based in the United States. The firm provides a wide range of beauty products, including branded and private label cosmetics, fragrance, hair, skincare, bath and body products, as well as salon styling tools through its retail outlets and online platforms.

UBS, Ulta, Stock