J.P. Morgan analyst Christopher Horvers has maintained their bullish stance on ULTA stock, giving a Buy rating yesterday.
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Christopher Horvers has given his Buy rating due to a combination of factors, primarily driven by Ulta Beauty’s strategic acquisition of Space NK Limited. This acquisition is seen as a significant step towards international expansion, aligning with Ulta’s growth strategy and enhancing its presence in the global beauty market. The UK, being the sixth largest beauty market, presents a promising opportunity for growth, and Space NK’s established reputation in the luxury beauty segment complements Ulta’s existing portfolio.
Additionally, the leadership under new CEO Kecia Steelman has been proactive, making swift decisions that are expected to bolster Ulta’s operational efficiency and market performance. The acquisition is anticipated to bring synergies, particularly in terms of brand exposure and leveraging Space NK’s expertise in luxury offerings. These strategic moves, coupled with the improving beauty market dynamics, support the expectation of upward revisions in Ulta’s performance, justifying the Buy rating.
According to TipRanks, Horvers is a 5-star analyst with an average return of 8.4% and a 61.86% success rate. Horvers covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Costco, and AutoZone.
In another report released yesterday, D.A. Davidson also reiterated a Buy rating on the stock with a $550.00 price target.