Goldman Sachs Lifts Ulta Beauty Price Target to $667 Amid Strong Earnings Report
Goldman Sachs has raised its price target for Ulta Beauty's stock to $667 from $648, while maintaining a Buy rating. The move follows the company's impressive second-quarter earnings report, which saw same-store sales growth of 3.8%, exceeding consensus estimates of 2.3%. Kate McShane, Goldman Sachs analyst, noted that investors may be concerned about increased promotional activity in the beauty sector during the second quarter compared to the prior year.
However, the firm believes Ulta Beauty is well positioned to continue gaining market share through its investments in marketing, labor, and service. In fact, McShane suggested that the company's guidance for the full year could prove conservative. This assessment is supported by 6 analysts who have revised their earnings upwards for the upcoming period.
Ulta Beauty reported impressive fiscal second-quarter results, surpassing Wall Street expectations with earnings of $6.55 per share on revenue of $3.0 billion. The company raised its full-year guidance for sales and earnings, indicating a strong performance in the first half of the year. Despite this, Ulta Beauty's stock experienced a decline in after-hours trading.