Do Analysts Think Ulta Is the Perfect Retail Stock?
Between February 1 and March 10, Ulta shares fell almost 10%, before scoring a big comeback on Friday to post a new 52-week high after reporting earnings.
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In each of the past two quarters, Ulta Salon, Cosmetics & Fragrance Inc. (NASDAQ: ULTA) has crushed estimates and watched its share price climb. Between February 1 and March 10, however, shares fell 9.5% before scoring a big comeback on Friday to post a new 52-week high, up more than 17% on the day after reporting earnings.
The company posted $1.69 in earnings per share (EPS) and $1.27 billion in revenue, which compared to Thomson Reuters consensus estimates that called for $1.54 in EPS on revenue of $1.23 billion. A year ago, Ulta rang up $1.35 in EPS on $1.05 billion in revenue.
The company also accelerated its stock buyback plan, another investor favorite.
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Analysts have reacted positively to Ulta’s performance and several have pushed their price targets north of $200 a share. Here are some recent changes:
- Baird raised its price target to $215 with a rating of Outperform.
- Cowen upped its price target to $206 and also rates the stock Outperform.
- Deutsche Bank raised its price target to $178 with a Hold rating.
- Goldman Sachs rates the stock Neutral, but it raised its price target to $202.
- Jefferies raised its price target to $180 and kept a Hold rating on the shares.
- JPMorgan boosted its price target from $215 to $231.
- Nomura raised its price target from $182 to $189 with a Buy rating.
- Raymond James lifted its price target to $215 with a Strong Buy rating.
- RBC raised its price target to $180 with a Sector Perform rating.
The stock closed at $191.62 on Friday, after posting a new 52-week high of $192.06. The 52-week low is $120.39 and the consensus price target is $190.61, although the most recent changes may not be included in the calculation yet. The high target is $225 and the low is $165.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
