Jefferies Upgrades Ulta Beauty (ULTA) on Strong Demand and Margin Outlook

Ulta Beauty, Inc. (NASDAQ:ULTA) ranks among the stocks to invest in before they split next. On April 20, Jefferies raised Ulta Beauty, Inc. (NASDAQ:ULTA) to Buy from Hold and increased its price objective to $700 from $635. The firm stated that revenue resilience has grown as the beauty industry has expanded and makeup participation has increased.

Ulta Beauty, Inc. (NASDAQ:ULTA) is better positioned to benefit from the cycle, thanks to improved brand novelty and retail execution, and its selling, general, and administrative expense expectations are now adjusted to a more reasonable level.

Jefferies claims that the stock exhibits skepticism and that a more attractive risk/reward profile is supported by modest margin improvement and better cost management.

Meanwhile, UBS kept its $810 price target and reaffirmed its Buy rating for Ulta Beauty, Inc. (NASDAQ:ULTA) on April 17. The reaffirmation comes after the company’s stakeholder event, which UBS saw as an opportunity to assess the retailer’s position in the cosmetics ecosystem. According to UBS, the event showed how important the specialty retailer is to its network of stakeholders, which includes brands, influencers, workers, and consumers.

Ulta Beauty, Inc. (NASDAQ:ULTA) is a specialty beauty retailer in the U.S. that operates more than 1,445 retail stores across 50 states. The company provides a variety of skincare, hair care, cosmetics, perfumes, and salon services.

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