Jim Cramer Discusses the Analyst Price Target Cut for Ulta Beauty

Ulta Beauty, Inc. (NASDAQ:ULTA) was among the stocks Jim Cramer was focused on, as he discussed Mad Money’s latest game plan for the week. Cramer highlighted the recent price revision by a Wall Street analyst, as he remarked:

Then there’s Ulta Beauty. Now, we went to see them not that long ago. You know, the stock’s down 15% this year, and today, an analyst cut their price target ahead of the quarter next Tuesday after the close. Maybe the analyst knows something. I don’t know. It was jarring.

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Ulta Beauty, Inc. (NASDAQ:ULTA) provides cosmetics, skincare, haircare, and fragrance products. In addition, the company offers in-store beauty services, including hair, makeup, brow, and skin treatments. During the March 23 episode, Cramer mentioned the stock and said:

On a day when beauty conglomerate Estee Lauder confirmed it’s in discussions to combine with Spanish cosmetics company, Puig, an announcement that caused Estee Lauder’s stock to fall 7.7%, we thought it might be a good time to check in with Ulta Beauty. That’s long our favorite cosmetics retailer. About a week and a half ago, Ulta Beauty reported a mixed quarter with strong same-store sales, but also higher-than-expected costs that translated into a legitimate earnings miss. The next day, the stock tumbled 14%, and it’s now down almost 28% from its February all-time highs, a perch it is rarely that far from… We think it is a very good price… Consider today’s trip to Ulta Beauty. Kecia Steelman, a 35-year veteran of retail, told us a tale of non-promotion, of a consumer that’s spending upfront where the more expensive goods are and also on the sides and in the back where you can find bargains. I was surprised that high price point merchandise up front was moving well, good gross margins.

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