Analyst Simeon Siegel of BMO Capital maintained a Hold rating on Ulta Beauty (ULTA – Research Report), reducing the price target to $404.00.
Simeon Siegel has given his Hold rating due to a combination of factors influencing Ulta Beauty’s financial outlook. Despite Ulta Beauty reporting strong earnings with both top-line and bottom-line beats, the company’s forward guidance for fiscal year 2025 was introduced below market expectations. This guidance suggests a year of transition with anticipated revenue growth but a decline in earnings per share, which has led to a cautious stance.
Additionally, while Ulta’s gross margin expanded in the fourth quarter, there is an expectation of margin pressure in the upcoming fiscal year. The company also anticipates an increase in selling, general, and administrative expenses, which could further impact profitability. Although Ulta Beauty continues to grow its loyalty membership base, the potential for competitive pressures and distribution challenges adds uncertainty to its future performance, prompting the Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $327.00 price target.
ULTA’s price has also changed moderately for the past six months – from $378.340 to $314.470, which is a -16.88% drop .