In a report released today, Rupesh Parikh from Oppenheimer maintained a Buy rating on Ulta Beauty Inc (ULTA), with a price target of $340. The company’s shares closed yesterday at $251.10.
Parikh observed:
“In today’s piece, we update our views on ULTA shares. Since the company’s report on 12/6, shares are now down 16% underperforming a 4% decrease in the S&P 500. We believe some of the pullback is justified, but overall view the sell-off as meaningfully overdone. Investors, including us, were positioned for upside, and instead margins surprised to the downside and the Q4 comp guide came in a bit light. We have built in more conservatism in our model on the GM line and have lowered our price target to $340 from $375 to reflect both the re-rating of high quality growth stories and the potential for less earnings upside. ULTA remains our top beauty pick, and we believe shares could rebound from current levels.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 15.0% and a 60.8% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.
Currently, the analyst consensus on Ulta Beauty Inc is a Moderate Buy with an average price target of $317.38, implying a 26.4% upside from current levels. In a report issued on November 26, Nomura also maintained a Buy rating on the stock with a $305 price target.
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The company has a one-year high of $322.49 and a one-year low of $191.70. Currently, Ulta Beauty Inc has an average volume of 1.05M.
Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock.
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Ulta Beauty, Inc. is a beauty retailer of cosmetics, fragrance, skin care products, hair care products, and salon services. It provide unmatched product breadth, value and convenience in a distinctive specialty retail environment. The company was founded in January 9, 1990 and its headquartered in Bolingbrook, IL.
