Oppenheimer Reiterates Buy Rating on Ulta Beauty (ULTA) Ahead of Earnings

On May 20, Oppenheimer increased the price target on Ulta Beauty, Inc. (NASDAQ:ULTA) stock from $435 to $465, reiterating a Buy rating on the stock.

Rupesh Parikh from Oppenheimer has raised the price target as he expects Ulta Beauty to meet financial targets ahead of its earnings on May 29. Wall Street expects Ulta Beauty to post earnings of $5.76 per share and the company has exceeded estimates in 7 out of the last 8 quarters.

Parikh believes that the company is well-positioned to achieve its FY2025 guidance, expecting 0-1% sales growth and EPS between $22.50 to $22.90. The analyst sees solid in-store execution and a promotional backdrop to support sustainable performance. The company may benefit from limited exposure to tariffs and potential closures of Kohl's stores.

Parikh mentioned that he is encouraged by the strategic direction of Ulta Beauty under new CEO Kecia Steelman. The analyst believes that ULTA is in a better position to sustain its company’s competitive position against its peers, including Amazon and Walmart.

Ulta Beauty, Inc. (NASDAQ:ULTA) is a leading speciality beauty retailer in the U.S. It offers branded and private label beauty products, including cosmetics, haircare, skincare, fragrance, salon styling, and bath and body products, in shop-in-shops, its stores, its mobile application, and Ulta.com website.

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Disclosure. None.