Morgan Stanley analyst Simeon Gutman maintained a Buy rating on Ulta Beauty yesterday and set a price target of $600.00.
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Simeon Gutman has given his Buy rating due to a combination of factors that highlight Ulta Beauty’s strong market position and growth potential. The company is expected to exceed its Q3’25 comparable sales and earnings per share (EPS) forecasts, driven by effective execution and favorable industry trends. Gutman anticipates that Ulta’s guidance for 2025 will be raised as the company continues to build momentum into the fourth quarter.
Ulta Beauty’s valuation appears attractive, trading at a discount compared to its historical averages, which makes it a compelling investment opportunity. The company’s strategic initiatives, such as the Unleashed plan, are expected to sustain mid-single-digit comparable sales growth, despite increased SG&A spending. Gutman views this investment as largely one-time and believes it will support further market share gains. The risk/reward profile is favorable, with significant upside potential compared to downside risks, reinforcing the Buy recommendation.
Gutman covers the Consumer Cyclical sector, focusing on stocks such as AutoZone, Dick’s Sporting Goods, and O’Reilly Auto. According to TipRanks, Gutman has an average return of 3.1% and a 57.86% success rate on recommended stocks.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a $606.00 price target.