
Ulta Beauty (ULTA) Stock Forecast & Price Target
Ulta Beauty (ULTA) Analyst Ratings
Bulls say
Ulta Beauty's strong financial outlook is supported by a 3.4% year-over-year revenue growth estimated for the recent quarter, attributed to new store contributions and positive comparable sales performance, along with a 3.0% increase in average ticket size. The company's gross margin for the fourth quarter of 2024 was reported at 38.2%, surpassing consensus estimates and reflecting improvements in inventory management and merchandise margins. Additionally, the firm's cash and cash equivalents stood at $703.2 million, indicating solid liquidity, alongside reduced short-term debt, which may facilitate further expansion opportunities both in the U.S. and internationally, including new franchised stores in Mexico and a joint venture in the Middle East.
Bears say
Ulta Beauty's projected total sales growth for the coming year has been revised down to 2.6% YoY, indicating a slowdown compared to a previous estimate of 3.1%, which reflects broader challenges in its growth trajectory. Additionally, a decline in fourth-quarter comparable sales in the makeup category and a decrease in spend per member by 6% year-over-year have raised concerns about consumer engagement and brand strength. Furthermore, management's guidance for earnings per share is lower than both prior consensus expectations and the previous year's performance, signaling potential profitability pressures ahead.
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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