Analyst Simeon Gutman from Morgan Stanley maintained a Buy rating on Ulta Beauty (ULTA – Research Report) and decreased the price target to $460.00 from $500.00.
Simeon Gutman has given his Buy rating due to a combination of factors that suggest potential growth and stability for Ulta Beauty. Despite some challenges in the beauty industry, such as weaker consumer sentiment and adverse weather conditions, Gutman believes that Ulta’s sales and margin expectations for 2025 are reasonable. The company’s guidance for comparable sales growth and EBIT margin, although slightly lower than street expectations, still allows for potential upside.
Gutman also highlights that Ulta’s strategic initiatives, including the “Unleashed” plan, could lead to improved sales trends. If Ulta achieves a comparable sales growth of over 2%, it could not only boost earnings but also reinforce confidence in the company’s strategies. Additionally, the company’s investment in strategic areas such as advertising and customer-facing initiatives is expected to drive growth. Overall, Gutman sees a favorable risk/reward profile for Ulta, with significant upside potential if the company exceeds its conservative guidance.
According to TipRanks, Gutman is a 3-star analyst with an average return of 1.5% and a 56.91% success rate. Gutman covers the Consumer Cyclical sector, focusing on stocks such as Advance Auto Parts, Tractor Supply, and Wayfair.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $526.00 price target.