Prime Highlights
- Ulta Beauty shares climbed to a record close of $612.42, driven by strong business performance and positive analyst sentiment.
- Investor confidence remains high as the company continues to attract customers through brand strength and improved in-store and online experiences.
Key Facts
- Ulta’s stock has risen more than 42% over the past year, lifting its market capitalisation to about $27.09 billion.
- Several brokerages raised their price targets, including UBS to $690 and Oppenheimer to $675, following better-than-expected quarterly results.
Background
Ulta Beauty Inc. shares climbed to a record high, closing at $612.42, as strong business performance and positive analyst views boosted investor confidence. The beauty retailer’s stock has risen more than 42% over the past year, making it one of the stronger performers in the retail sector.
Data from InvestingPro shows Ulta delivered a total return of about 39% over the last year, with a sharp 26% gain in the past six months. The rally has raised the company’s market value to $27.09 billion as customers continue to buy its beauty products and like its strong brand.
Ulta’s growth comes as the company continues to expand its product range and improving shopping in stores and online. These efforts bring in customers and boost sales, even with tough competition. But market data shows the stock is priced above its fair value. Ulta currently trades at a price-to-earnings ratio of 23.23, which is considered high by some analysts, though its overall financial health remains rated as “good.”
Several brokerages recently raised their price targets on the stock. Oppenheimer increased its target to $675 after Ulta posted better-than-expected third-quarter results. UBS lifted its target to $690, pointing to strong execution and cautious future guidance. Morgan Stanley raised its target to $640 and increased its earnings forecasts for the next few years. Evercore ISI kept its Outperform rating with a $660 target, showing confidence in the company’s long-term outlook.
Ulta announced a new severance plan for senior executives who lose their jobs. The plan gives them salary support, possible bonuses, and company-paid health coverage for up to a year.
Overall, Ulta Beauty’s strong results, analyst support, and clear strategy have helped drive its shares to a new high.
