Analyst Simeon Gutman from Morgan Stanley maintained a Buy rating on Ulta Beauty and keeping the price target at $550.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Simeon Gutman has given his Buy rating due to a combination of factors that highlight Ulta Beauty’s strategic positioning and growth potential. Despite some concerns regarding the acquisition of Space NK, Gutman sees this move as a relatively low-risk venture that could enhance Ulta’s brand portfolio. The acquisition, while small in comparison to Ulta’s overall enterprise value, offers potential synergies by integrating Space NK’s premium brand mix, which could be leveraged in the U.S. market.
Furthermore, Gutman acknowledges that while international expansions are often viewed with skepticism, this particular acquisition does not detract from Ulta’s core business strengths. The robust growth of Space NK, with significant year-over-year sales increases, presents an opportunity for Ulta to capitalize on an expanding international retailer. Overall, the acquisition’s impact on Ulta’s financials is considered minimal, reinforcing the Buy rating as Ulta continues to stabilize its margins and market share under new management.
Gutman covers the Consumer Cyclical sector, focusing on stocks such as Home Depot, Williams-Sonoma, and Ulta Beauty. According to TipRanks, Gutman has an average return of 3.0% and a 60.69% success rate on recommended stocks.
In another report released yesterday, Telsey Advisory also maintained a Buy rating on the stock with a $520.00 price target.