Ulta Beauty, the well-known American specialty beauty retailer, has received a significant boost in its target price from equities researchers at Argus. The target price has been increased from $530.00 to $600.00, indicating a potential upside of 10.84% from the company’s previous close. The news has been welcomed by investors and clients, further highlighting the growing confidence in the brand.
Despite the retail sector facing significant challenges due to changing consumer behaviors and technological advancements, Ulta Beauty has managed to stay ahead of the game with its innovative approach to beauty products. The specialty retailer reported impressive quarterly earnings results on March 9th that exceeded analysts’ consensus estimates by $1.15 per share, indicating robust financial performance.
The numbers speak for themselves – Ulta Beauty had a return on equity of 67.19% and a net margin of 12.17%. The firm also witnessed an increase in revenue during the quarter, up 18.2% year-over-year to $3.23 billion, compared to the consensus estimate of $2.99 billion.
Ulta Beauty prides itself on offering customers an exceptional shopping experience through its retail stores, salon services, and e-commerce platform across the United States. Its range of products includes makeup, skincare, tools and brushes, fragrance, and bath and body – everything needed for beauty enthusiasts all under one roof.
With its modern approach to retailing, Ulta Beauty is maintaining an upward trajectory within the retail landscape due to their smart business decisions based on servicing the modern-day consumer demand for convenience-led shopping experiences. As Ulta’s philosophy believes in customer-centricity, analysts predict that their core values hold the ability to bolster sustainable growth opportunities for shareholders who invest in their growth story.
Ulta Beauty Inc. (NASDAQ: ULTA) has been on the radar of many equities analysts who have issued research reports about the company. According to data from Bloomberg, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $561.00. Recently, DA Davidson upped its price target on Ulta Beauty to $605.00, while BMO Capital Markets raised it to $510.00 and gave a “market perform” rating. Piper Sandler also upped its price objective on Ulta Beauty from $610.00 to $615.00 and gave the stock an “overweight” rating in a research note.
Ulta Beauty operates in the retail sector of beauty products, offering salon services, retail stores, and e-commerce through one reportable segment. The company’s products include makeup, skincare, tools and brushes, fragrance, and bath and body products. Ulta was founded in Illinois in 1990 and now has a twelve month high-reaching figure of $543.40 per share with a market cap value of $27.17 billion.
A total of fifteen analysts hold buy ratings for Ulta Beauty’s stocks; one analyst holds strong sell ratings while five other analysts maintain hold ratings for the company. Insider Jodi J Caro sold 4,500 shares at an average price of $506.65 apiece on March 20th while director Mike C Smith disposed of 400 shares at an average price of $521.63 apiece on March 14th. Institutional investors now own over 90% of Ulta Beauty Inc.’s outstanding shares amounting to millions of dollars as growth prospects appear appealing given that some investors have recently modified their holdings in Ulta Beauty’s stocks respectively.
Despite the effect of the pandemic, Ulta Beauty has been resilient in maintaining its position in the market. Overall, Ulta Beauty Inc.’s strong leadership team and impressive statistics show why it still remains a great stock pick for investors who have a long-term investment mindset. As we are looking forward to more investment into various industries, there might be no better time than now to invest in the company’s stocks.