UBS lowers Ulta Beauty stock price target on margin pressures
UBS has reduced its price target on Ulta Beauty (NASDAQ:ULTA) shares from $735 to $710. The retailer, valued at a market cap of $23.2 billion, maintains a Buy rating despite the adjustment. While Ulta Beauty's stock displayed strong performance in its latest quarter, UBS highlights margin pressures as the reason for the lowered target.
Operating profit grew faster than sales, and earnings per share grew even faster, indicating a high-quality earnings model. Revenue growth, productivity, and capital returns have now aligned, according to UBS. However, the firm noted modest declines in gross margin and flat transactions during the quarter. Ulta Beauty's revenue grew by 11% over the past year, delivering an impressive 46% return on equity.
Despite the positive earnings report, Ulta Beauty's stock saw a decline in after-hours trading, signaling some investor concern.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
