Ulta Beauty Faces 'Transitional' FY25, May Fall Short Of Long-Term Targets: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
BofA Securities analyst Lorraine Hutchinson maintains a Neutral rating on Ulta Beauty (NASDAQ:ULTA) with a $380 price target. The FY25 EPS estimate is reduced by 8% due to more store openings and lower margins. Ulta projects annual sales growth of 4-6% and a new $3 billion share buyback program. FY25 is seen as transitional, with potential shortfalls in long-term targets as the company invests in growth initiatives.
October 17, 2024 | 5:58 pm
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BofA Securities maintains a Neutral rating on Ulta Beauty with a $380 price target. FY25 EPS estimate is cut by 8% due to more store openings and lower margins. A $3 billion share buyback is announced, but FY25 may fall short of long-term targets.
The analyst's Neutral rating and reduced EPS estimate suggest a cautious outlook for Ulta Beauty. The $3 billion share buyback could support the stock, but the transitional nature of FY25 and potential shortfalls in long-term targets may limit upside potential. The market's reaction is likely neutral as the news balances positive and negative factors.
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