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.
  • Photo Via Wikimedia Commons
ULTA Logo
ULTAUlta Beauty Inc
$383.20-0.71%

Stock Score Locked: Want to See it?

Benzinga Rankings give you vital metrics on any stock – anytime.

Reveal Full Score
Edge Rankings
Momentum
53.18
Growth
48.45
Quality
44.95
Value
59.39
Price Trend
Short
Medium
Long
Market News and Data brought to you by Benzinga APIs
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm

Posted In:
Comments
Loading...