BofA Securities analyst Lorraine Hutchinson reiterated the Neutral rating on Ulta Beauty, Inc. ULTA with a price objective of $380.
ULTA is grappling with challenges like shifting consumer behavior toward value-driven spending and increased competition, which are eroding its market share.
Ulta Beauty plans to open 200 new stores as part of a long-term strategy announced this week. At its investors' day Wednesday (Oct. 16), the beauty retailer said it hopes to open the new locations over the next three years, bringing its store count to more than 1,800, according to a press release.
Ulta Beauty announces an ambitious strategic plan and new long-term financial targets, alongside authorizing a new share repurchase plan.
The beauty retailer expects slower growth, but the underlying business still has a lot of appeal.
Ulta Beauty outlined its long-term financial goals on Wednesday, including plans to open 200 stores over the next three years. It maintained its guidance for fiscal year 2024.
Ulta Beauty shares fell on Wednesday, as the company stuck by its current forecast and shared its longer-term financial targets. The beauty retailer's CEO Dave Kimbell said the company is facing stiffer competition and a more dynamic consumer backdrop.
Ulta Beauty Inc. announced a new $3 billion share buyback authorization on Wednesday and said it plans to open 200 new stores over the next three years.
Ulta Beauty (ULTA) closed at $369.32 in the latest trading session, marking a -0.34% move from the prior day.
It's a new Buffett stock, and it's the right time to buy.
I'm initiating Ulta Beauty at a buy rating with a $448 price target, or ~25% upside from current levels. The stock is down more than 25% this year on self-inflicted problems, including an ERP mess that has been since resolved and an ongoing price war between retailers. Still, the company's renewed focus on its e-commerce channel and social media marketing, plus recent acceleration in online sales, can help get Ulta back on the right path.