Ulta Beauty Raises Price Target to $575 by B of A Securities

B of A Securities raised Ulta Beauty's (ULTA) price target to $575, a 15% increase, while maintaining a "Neutral" rating. Analysts have also increased price targets for ULTA from other firms, with an average target of $546.91 and a consensus rating of 2.4, indicating "Outperform" status. The estimated GF Value in one year is $564.12, suggesting a 6.31% upside from the current price.

Ulta Beauty (ULTA) has seen an upward revision in its price targets from several leading financial analysts. Bank of America Securities raised its price target to $575, a 15% increase from the previous target, while maintaining a "Neutral" rating. This move comes amidst a broader trend of increased price targets and consensus ratings for ULTA.

The average price target for ULTA has risen to $546.91, with a consensus rating of 2.4, indicating an "Outperform" status. This suggests that analysts are bullish on the company's prospects. The estimated GF Value in one year is $564.12, suggesting a 6.31% upside from the current price [1].

Analysts have cited Ulta Beauty's strong second-quarter earnings report as a key driver of this optimism. The company beat both earnings and revenue expectations, with earnings per share of $5.78 and revenue of $2.79 billion [2]. Additionally, Ulta lifted its fiscal 2025 revenue guidance to between $12 billion and $12.1 billion, reflecting the company's robust performance and growth potential [3].

Several other firms have also raised their price targets for ULta Beauty. TD Cowen raised its target to $600, while maintaining a Hold rating. Barclays analyst Adrienne Yih upgraded the stock to "overweight" with a new price target of $589, reflecting a 13% upside from the current closing price of $520.18. Goldman Sachs analyst Kate McShane raised her price forecast to $584, while JPMorgan analyst Christopher Horvers raised his target to $600 [4].

Despite these positive developments, analysts have also identified potential risks. TD Cowen noted that margin deleverage due to store occupancy and supply chain optimization headwinds, as well as elevated SG&A spend growth, could pose challenges in the second half of the year [1]. However, the overall consensus remains positive, with investors confident in Ulta Beauty's strategic initiatives and market position.

References:
[1] https://www.investing.com/news/analyst-ratings/ulta-beauty-stock-price-target-raised-to-600-from-550-at-td-cowen-93CH-4216696
[2] https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/08/47422743/ulta-beauty-delivers-strong-quarter-investors-brush-off-the-glow
[3] https://www.ainvest.com/news/ulta-beauty-receives-buy-rating-589-price-target-barclays-2508/
[4] https://www.tipranks.com/news/the-fly/ulta-beauty-price-target-raised-to-625-from-585-at-da-davidson-thefly-2