Telsey Raises Ulta (ULTA) Price Target, Maintains Outperform Rating

Telsey Advisory Group lifted its price target on Ulta Beauty, Inc. (NASDAQ:ULTA), on May 30, to $520 from $460, and reaffirmed an Outperform rating after the company posted a solid beginning to the fiscal year.

Analyst Dana Telsey highlighted Ulta’s performance amid a cautious consumer backdrop, calling it a “strong start” that underscores the retailer’s resilience.

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In a note to clients, the firm pointed to several structural advantages supporting Ulta’s momentum. These include a well-positioned store network, robust supply chain capabilities, and a highly engaged loyalty program that continues to drive traffic and repeat business. Ulta Beauty, Inc. (NASDAQ:ULTA)’s collaborative efforts with beauty brands, spanning both established names and emerging labels, were also cited as a meaningful factor in sustaining customer interest and differentiating the retailer in a competitive landscape. The company’s ability to balance value and premium offerings has helped it maintain steady demand despite broader economic pressures.

Telsey sees the combination of operational discipline and strategic partnerships as key to Ulta’s continued success. The updated price target reflects confidence in the company’s growth strategy and its ability to navigate near-term headwinds while investing in long-term opportunities.

Even with discretionary spending under pressure, Ulta’s results show that beauty remains a priority for many consumers. Telsey believes the company is well-positioned to capture ongoing market share gains as the year progresses.

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Disclosure: None.