Despite Hair Category Challenges, Ulta Beauty Set For Steady Q2 Performance With Eye On Amazon's Prestige Brands: Analyst
Portfolio Pulse from Shivani Kumaresan
Oppenheimer analyst Rupesh Parikh reiterated an Outperform rating on Ulta Beauty Inc (ULTA) with a price target of $540. The company is expected to report its Q2 FY23 earnings on August 24. Despite challenges in the hair category, the analyst sees a healthy beauty backdrop with continued strength in the mass category. The analyst will continue to monitor student loan impacts on the beauty category, increased promotional intensity, and prestige brand additions on Amazon.com Inc (AMZN), with L'Oreal Co (LRLCY) moving more aggressively on the platform.
August 22, 2023 | 6:49 pm
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NEUTRAL IMPACT
Despite challenges in the hair category, Ulta Beauty Inc is expected to perform steadily in Q2 FY23. The company's shares are trading lower by 4.03%.
The analyst's Outperform rating and the price target of $540 indicate a positive outlook for ULTA. However, the current trading lower by 4.03% suggests a short-term negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Amazon.com Inc's addition of prestige brands, with L'Oreal Co moving more aggressively on the platform, is being closely monitored.
The addition of prestige brands on Amazon's platform, with L'Oreal moving more aggressively, could potentially boost Amazon's revenues and stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
L'Oreal Co is moving more aggressively on Amazon.com Inc's platform, which is being closely monitored.
L'Oreal's aggressive move on Amazon's platform could potentially increase its visibility and sales, positively impacting its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50