DA Davidson increased its price target on Ulta Beauty stock to $625 from $585, maintaining a Buy rating after the retailer reported second-quarter earnings that exceeded expectations. The firm joins a wave of bullish analyst revisions following Ulta Beauty's results, which showed revenue growth of 11.16% and diluted EPS of $27.45.
The company's comparable sales rose 3.8%, outpacing the consensus estimate of 2.3% and marking its best two-year comparable sales performance since the first quarter of 2024. Second-quarter EPS came in at $6.55, exceeding both Raymond James' forecast and the broader consensus. Ulta Beauty shares had gained 20% in the six months leading up to the report.
Goldman Sachs raised its target to $667, while Jefferies lifted its target to $650, both maintaining Buy ratings. Raymond James reiterated a Strong Buy with a $700 target. UBS trimmed its target to $710 from $735 but kept a Buy rating. The stock was indicated down 3.2% in after-hours trading at $534.05, down $9.14 from the previous close.
DA Davidson described Ulta Beauty as the top performer among big-box retailers in its coverage universe, excluding Target. InvestingPro noted that three analysts have revised earnings estimates upward for the upcoming period, with the firm covering Ulta Beauty and more than 1,400 U.S. equities.
