
Ulta Beauty (ULTA) Stock Forecast & Price Target
Ulta Beauty (ULTA) Analyst Ratings
Bulls say
Ulta Beauty's strong performance indicators include a year-over-year revenue increase of approximately 3.4%, primarily driven by new store contributions and a 3.0% rise in average transaction value. The company's gross margin for F4Q24 reached 38.2%, exceeding consensus estimates, due to factors such as reduced inventory shrinkage and a favorable channel mix, despite some challenges from higher supply chain costs. With a robust cash position of $703.2 million and continued opportunities for expansion, including franchised stores in Mexico and a joint venture in the Middle East, Ulta Beauty demonstrates a solid foundation for future growth.
Bears say
Ulta Beauty is expecting a total sales growth of only 2.6% YoY, a decrease from the previous estimate of 3.1%, which reflects challenges in sustaining robust topline growth amidst current market conditions. The company's fourth-quarter sales declined by 1.9% YoY, arousing concerns as the performance fell short of earlier expectations and coincided with a decline in makeup comps during the same quarter. Additionally, management's guidance for earnings per share (EPS) between $22.50 and $22.90 indicates a reduction from last year's $25.34 and the prior consensus estimate of $23.52, further underpinning a bearish outlook on the stock's potential performance.
This aggregate rating is based on analysts' research of Ulta Beauty and is not a guaranteed prediction by Public.com or investment advice.
Ulta Beauty (ULTA) Analyst Forecast & Price Prediction
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