Jefferies analyst Ashley Helgans maintained a Hold rating on Ulta Beauty yesterday and set a price target of $550.00.
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Ashley Helgans’s rating is based on Ulta Beauty’s recent launch of the UB Marketplace, which, despite its innovative approach, may not be enough to counteract the current sales losses to major competitors like Amazon and Walmart. The marketplace is designed to introduce new brands and expand Ulta’s offerings, yet it operates in a niche market compared to the broad appeal of Amazon and Walmart’s platforms.
While the UB Marketplace integrates well with Ulta’s existing digital ecosystem, the competition from larger retailers who offer a wider range of products and services, including more attractive shipping options, poses a significant challenge. Helgans believes that although Ulta has gained some market share from Sephora, these gains are insufficient to offset the losses to Amazon and Walmart, leading to a Hold rating on the stock.
In another report released on October 6, TD Cowen also reiterated a Hold rating on the stock with a $600.00 price target.
ULTA’s price has also changed dramatically for the past six months – from $358.090 to $538.490, which is a 50.38% increase.