Ulta Beauty Sees No Signs Of Trade-Down, Says This Analyst

Raymond James analyst Olivia Tong reiterated a Strong Buy rating on the shares of Ulta Beauty Inc ULTA and raised the price target to $505 from $485, with an upside of 22%.
The analyst raised the price target after the company reported better-than-expected Q2 earnings.
Tong said, like many in consumer, Ulta’s growth slowed in late June/early July but then quickly rebounded, which has continued into Q3.
The analyst noted that with all key sub-categories growth in double digits in Q2, the company is seeing no signs of trade-down across its customer base, no matter the income cohort.
She believes 2H will see a more competitive and promotional environment amongst retailers in general, especially for holidays.
Tong added there is an upside opportunity based on the strength of the Beauty category and Ulta’s high-income skewing customer base and market share gains.
Price Action: ULTA shares are trading lower by 1.38% at $413.48 on the last check Friday.
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Momentum29.61

Growth53.76

Quality50.48

Value59.98

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Medium

Long

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