Beyond The Numbers: 19 Analysts Discuss Ulta Beauty Stock

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Throughout the last three months, 19 analysts have evaluated Ulta Beauty ULTA, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 6 11 1 0
Last 30D 0 2 3 0 0
1M Ago 0 1 0 0 0
2M Ago 0 1 0 0 0
3M Ago 1 2 8 1 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $450.95, a high estimate of $538.00, and a low estimate of $364.00. Witnessing a positive shift, the current average has risen by 0.81% from the previous average price target of $447.32.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Ulta Beauty among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Mark Astrachan Stifel Lowers Hold $400.00 $475.00
Lorraine Hutchinson B of A Securities Lowers Neutral $380.00 $475.00
Korinne Wolfmeyer Piper Sandler Lowers Neutral $364.00 $425.00
Dana Telsey Telsey Advisory Group Lowers Outperform $460.00 $500.00
Simeon Gutman Morgan Stanley Lowers Overweight $460.00 $500.00
Dana Telsey Telsey Advisory Group Maintains Outperform $500.00 $500.00
Simeon Gutman Morgan Stanley Raises Overweight $500.00 $430.00
Adrienne Yih Barclays Raises Equal-Weight $445.00 $410.00
Oliver Chen TD Cowen Raises Hold $480.00 $450.00
Susan Anderson Canaccord Genuity Raises Buy $538.00 $500.00
Kelly Crago Citigroup Raises Neutral $457.00 $450.00
Lorraine Hutchinson B of A Securities Raises Neutral $475.00 $460.00
Anna Glaessgen B. Riley Securities Raises Neutral $430.00 $330.00
Mark Astrachan Stifel Raises Hold $475.00 $455.00
Ike Boruchow Wells Fargo Raises Underweight $370.00 $350.00
Korinne Wolfmeyer Piper Sandler Raises Neutral $425.00 $394.00
Rupesh Parikh Oppenheimer Raises Outperform $515.00 $505.00
Dana Telsey Telsey Advisory Group Maintains Outperform $500.00 $500.00
Korinne Wolfmeyer Piper Sandler Raises Neutral $394.00 $390.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Ulta Beauty. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Ulta Beauty compared to the broader market.
  • Price Targets: Delving into movements, analysts provide estimates for the future value of Ulta Beauty's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Ulta Beauty's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Ulta Beauty analyst ratings.

Discovering Ulta Beauty: A Closer Look

With more than 1,400 freestanding stores and a partnership with Target, Ulta Beauty is the largest specialized beauty retailer in the US. The firm offers makeup (41% of 2023 sales), fragrances, skin care (19% of sales), and hair care products (19% of sales), and bath and body items. Ulta offers private-label products and more than 600 individual brands. It also offers salon services, including hair, makeup, skin, and brow services, in all stores. Most Ulta stores are approximately 10,000 square feet and are in suburban strip centers. The firm intends to open franchises in Mexico in 2025. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.

Ulta Beauty: A Financial Overview

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Ulta Beauty displayed positive results in 3 months. As of 31 October, 2024, the company achieved a solid revenue growth rate of approximately 1.65%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 9.57%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Ulta Beauty's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.36% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.14%, the company showcases effective utilization of assets.

Debt Management: Ulta Beauty's debt-to-equity ratio is below the industry average at 0.92, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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