Ulta Beauty Faces Headwinds From Slowing Trends, Notes Analyst
Portfolio Pulse from Shivani Kumaresan
Goldman Sachs analyst Kate McShane maintained a Neutral rating on Ulta Beauty Inc (NASDAQ:ULTA) but lowered the price target from $607 to $605, citing slowing trends in the beauty industry and challenges in maintaining market share in the prestige segment. The analyst observed flat sales growth, consistent transaction values, and a slight decrease in mass segment sales. Despite ULTA's strong loyalty program, the company faces tough comparisons and a potential slowdown in the beauty industry, leading to lowered estimates for Q1 comp growth, FY24 comp growth, EBIT margin, and EPS.
April 08, 2024 | 5:37 pm
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Goldman Sachs analyst Kate McShane maintained a Neutral rating on Ulta Beauty Inc but lowered the price target from $607 to $605, citing slowing trends and challenges in the prestige segment. The company faces tough comparisons and a potential slowdown, leading to lowered estimates for Q1 comp growth, FY24 comp growth, EBIT margin, and EPS.
The lowering of the price target and estimates by Goldman Sachs reflects concerns about Ulta Beauty's ability to maintain its growth momentum in the face of slowing industry trends and challenges in the prestige segment. This negative outlook, especially coming from a major analyst, is likely to impact investor sentiment and could lead to a short-term decrease in ULTA's stock price.
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IMPORTANCE 90
RELEVANCE 100