William Blair analyst Dylan Carden has maintained their neutral stance on ULTA stock, giving a Hold rating on June 12.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Dylan Carden has given his Hold rating due to a combination of factors impacting Ulta Beauty’s current and future performance. The recent departure of the CFO without a planned successor introduces a level of uncertainty in the company’s financial leadership, although the interim CFO has substantial experience within the company. Additionally, while Ulta has reaffirmed its guidance for fiscal 2025, the projected growth and margins suggest a transitional period with limited upside potential.
The valuation of Ulta shares is currently at the higher end of a volatile range, reflecting slower growth and potential margin pressures. The shift towards online sales in the beauty industry poses a risk to traditional retail operations, potentially leading to margin compression. This trend is evident as recent comp growth has been primarily driven by online channels, which could cannibalize retail sales. Given these factors, the Hold rating reflects a cautious stance on Ulta’s ability to navigate these challenges while maintaining its market position.
According to TipRanks, Carden is a 5-star analyst with an average return of 23.0% and a 63.53% success rate. Carden covers the Consumer Cyclical sector, focusing on stocks such as Boot Barn, National Vision Holdings, and Chewy.
In another report released on June 12, TD Cowen also maintained a Hold rating on the stock with a $465.00 price target.