On Jan 07, major Wall Street analysts update their ratings for $Ulta Beauty (ULTA.US)$, with price targets ranging from $370 to $538.
BofA Securities analyst Lorraine Hutchinson maintains with a hold rating, and sets the target price at $475.
Citi analyst Kelly Crago maintains with a hold rating, and adjusts the target price from $450 to $457.
Wells Fargo analyst Ike Boruchow maintains with a sell rating, and maintains the target price at $370.
Loop Capital analyst Anthony Chukumba maintains with a buy rating, and maintains the target price at $480.
Stifel analyst Mark Astrachan maintains with a hold rating, and adjusts the target price from $455 to $475.
Furthermore, according to the comprehensive report, the opinions of $Ulta Beauty (ULTA.US)$'s main analysts recently are as follows:
After a four-year tenure, Ulta Beauty announced the retirement of CEO Dave Kimbell, with COO Kecia Steelman set to take his place immediately. The transition, though unexpected, positions Steelman as a favorable choice for the leadership role. Additionally, Ulta has issued an update on its Q4 guidance, anticipating modestly positive comparable store sales, contrary to the consensus projection of a 1.2% decrease. The company also anticipates an EBIT margin exceeding prior expectations, indicating a less promotional approach to achieving these positive results. These developments suggest diminishing competitive pressures and a more optimistic outlook for fiscal 2025.
Following the recent announcement on January 6 about the company providing a positive business update, analysts noted a significant leadership transition with the CEO's unexpected retirement and the immediate appointment of the current COO as the new CEO. This change arrives as the business is gaining momentum. Expectations for Q4 include rising comps and operating margins surpassing the top end of previous forecasts. This development is viewed as a positive step for the bullish outlook on the company, and it remains a favored choice for strategic portfolio realignment in 2025.
The company's encouraging Q4 trading update, which coincided with the announcement that president and COO Kecia Steelman will take over as CEO, effectively immediately, led to raised EPS estimates for FY24-FY26. The timing of the CEO transition was somewhat unexpected, although the choice of Steelman was largely anticipated.
Ulta Beauty initiated the holiday pre-announcement phase with improved Q4 outcomes and unexpectedly announced a change in CEO position. It is noted that Ulta, being the initial company to report such an upside, likely sets a precedent with expectations of more optimistic updates in the retail sector forthcoming.
Here are the latest investment ratings and price targets for $Ulta Beauty (ULTA.US)$ from 6 analysts:
Note:
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