Ulta Beauty (ULTA – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Kate McShane from Goldman Sachs upgraded the rating on the stock to a Buy and gave it a $423.00 price target.
Kate McShane has given her Buy rating due to a combination of factors that suggest a positive outlook for Ulta Beauty. The company is expected to show strong comparable sales momentum in the first quarter and throughout fiscal year 2025, supported by recent sales acceleration and an increase in monthly active users. Additionally, there has been a notable rise in search activity for Ulta’s promotional events, indicating heightened consumer interest.
Furthermore, McShane believes that competitive pressures from rivals like Sephora may ease, as recent trends show Ulta’s new product introductions gaining traction. The fiscal year 2025 guidance might also be conservative, given Ulta’s track record of surpassing expectations in selling, general, and administrative expenses. Lastly, the stock’s valuation appears attractive, trading below its three-year average, which adds to the investment appeal.
McShane covers the Consumer Cyclical sector, focusing on stocks such as Bath & Body Works, Williams-Sonoma, and Ollie’s Bargain Outlet Holding. According to TipRanks, McShane has an average return of 4.6% and a 59.38% success rate on recommended stocks.
In another report released on March 17, Loop Capital Markets also reiterated a Buy rating on the stock with a $480.00 price target.