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Ulta Beauty To Recover In Second Half Of 2024: 8 Analysts Dissect Q1 Results


Shares of Ulta Beauty Inc (NASDAQ:ULTA) were climbing in early trading on Friday, after the company reported better-than-expected first-quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

Goldman Sachs On Ulta Beauty

Analyst Kate McShane maintained a Neutral rating, while reducing the price target from $476 to $475.

Although Ulta Beauty reported an earnings beat, its comps of 1.6% were slightly below consensus due to “share loss in prestige primarily driven by pressure in makeup and hair care,” McShane said in a note. “ULTA is up against difficult top line compares following outsized growth in the category,” she added.

The company lowered its full-year guidance for same-store sales of +2%-3%, from its earlier outlook of +4%-5%, the analyst stated. “That said, we continue to note that ULTA is one of the strongest merchandisers in retail with healthy beauty demand at its back,” she further wrote.

JPMorgan On Ulta Beauty

Analyst Christopher Horvers reiterated an Overweight rating, while lifting the price target from $530 to $544.

“Comps better than feared and in-line with JPM Fireside expectations on slower industry growth and prestige share,” Horvers wrote in a note.

Although Ulta Beauty continues to face competitive pressures, its 2024 guide “looks reasonable at the high end and the same can be said for 2025, in our view,” the analyst stated. While comps in the second quarter are likely to be similar to the first quarter, the company’s efforts to improve share dynamics can help it generate 3% comps in the back half of the year, he added.

Telsey Advisory Group On Ulta …

Full story available on Benzinga.com

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