Barclays raises price target on Ulta Beauty at $445

Investing.com -- Barclays raised its price target on Ulta Beauty Inc (NASDAQ:ULTA ) to $445 from $410 on stronger-than-expected preliminary fourth-quarter results and the appointment of Kecia Steelman as the company's new CEO.

Ulta announced on Jan. 6 that Steelman, a 10-year veteran of the company, would take over as President and CEO, succeeding Dave Kimbell.

Preliminary Q4 results also showed stronger holiday performance, prompting the company to raise its guidance, with comp sales now expected to grow modestly instead of a previously anticipated low single-digit decline.

Barclays (LON:BARC ) revised its earnings estimates for fiscal 2024, 2025, and 2026 upward, driven by improved sales and margin forecasts.

The brokerage also increased its valuation multiple, noting progress toward stabilizing operating profit levels despite competitive challenges in the beauty industry.

 

Source: Investing.com