DA Davidson Lifts PT on Ulta Beauty (ULTA) Following Q1 Beat, Keeps Buy Rating

On May 30, DA Davidson lifted the price target on Ulta Beauty, Inc. (NASDAQ:ULTA) from $415 to $485 and kept its Buy rating on the stock.

Michael Baker from DA Davidson raised the price target on ULTA following its Q1 2025 earnings beat and guidance increase. The company posted adjusted earnings per share of $6.70, surpassing consensus by $0.87, while the revenue came in at $2.85 billion, which exceeded estimates by $56.38 million. Ulta Beauty launched 19 new brands during the first quarter, contributing to increased guest engagement.

DA Davidson Lifts PT on Ulta Beauty (ULTA) Following Q1 Earnings Beat, Keeps Buy Rating

A close-up of a customer’s hands selecting beauty products from an online retailer.

Baker pointed out that the company gained momentum from the Sephora store-within-a-store rollout, as it has achieved better comps, with three consecutive quarters of accelerating trends. Ulta Beauty has updated its FY2025 revenue guidance to be in the range of $11.5-$11.7 billion. Whereas, the earnings guidance is between $22.65-$23.30 per share.

Ulta Beauty, Inc. (NASDAQ:ULTA) is a speciality beauty retailer in the U.S. with more than 1,445 retail stores across 50 states. The company offers a range of cosmetics, skincare products, hair care products, fragrances, and salon services.

While we acknowledge the potential of ULTA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ULTA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.