Ulta Beauty Rises After Analysts Lift Targets on Earnings Beat

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Ulta Beauty Rises After Analysts Raise Targets on Earnings Conquer

Shares of Ulta Beauty jumped Friday immediately after the cosmetics retailer swung to a profit all through its fiscal initial quarter. Revenue picked up in a rebounding U.S. financial system.

Analysts from Barclays, Credit history Suisse, Evercore ISI, Jefferies, J.P. Morgan and Oppenheimer raised their rate targets on the stock.

Shares of the Bolingbrook, Unwell., business at last examine rose 5.2% to $345.28.

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Analysts at Barclays elevated their price tag focus on on Ulta to a Wall-Street-high $452 from $361.

“The final results display the electric power of magnificence in women’s life,” Barclays analysts wrote in a take note. [And] as the economic system reopens, we even now see the catalysts of return to work and back to faculty. Ulta saw broad-primarily based toughness across virtually every group.”

Analysts at Jefferies elevated their focus on on the stock to $330 from $300. The quarter “outshone throughout the board, although investor comments indicates expectations were being at that stage, and [the] outlook was milder than hoped, suggesting to start with-quarter power [was] partly transitory,” they wrote.

“The combo of stimulus, ‘reload’ and underspend on expenses helped operational margins,” extra the Jefferies analysts, who have a maintain ranking on the stock.

J.P. Morgan elevated its value goal on Ulta to $379 from $357, describing the chain “one of the very best COVID-19 restoration shares in retail.”

“Ulta touched all the bases and was strongly above our bullish preview,” the expenditure firm’s analysts reported,

“Even bigger image, provided how early it is in the reopening course of action, the modern mask mandate removals, larger travel and social events as the 12 months progresses, and more work-from-operate/study-from-college in 2nd-50 percent 2021, we believe that Ulta’s profits recovery is in the quite early levels when we are optimistic colour cosmetics drawer restock remains ahead of us,” they wrote in a notice.

Credit Suisse explained that “[similar] to broader retail tendencies, Ulta benefited in late March from stimulus — which was a even larger driver for mass cosmetics which turned favourable.”

The firm maintained its outperform ranking and raised its rate concentrate on to $390 from $350.

Oppenheimer, which charges the stock outperform, lifted its price tag focus on on Ulta to $385 from $360.

The expense company touted Ulta Natural beauty and Estee Lauder amid its “best natural beauty picks.”

Evercore ISI analyst Omar Saad identified as Ulta’s benefits a “mic fall.” Evercore also has an outperform rating on the inventory.

Analysts at Piper Sandler stated, “We continue on to favor ULTA on the heels of their 1st-quarter success, which not only came in forward of expectations but also noticed the best level of very first-quarter profits, gross margin and [earnings before interest and taxes] in the record of the business.”

“In phrases of outperformance, retail outlet and electronic efficiency have been each improved than envisioned,’ the analysts wrote.

Piper Sandler has an chubby rating on the inventory and a selling price target of $386.

And at Cowen, analyst Oliver Chen mentioned that even though initial-quarter outcomes had been a “cleanse conquer,” the current steerage implies that margins will be pressured as opposed with 2019.

“Constrained margins with [an] improving top line could weigh on [the] stock, but we continue to like Ulta in the lengthy operate,” he wrote.

Chen added that Ulta can widen its margins as a result of a selection of avenues which include cleaner inventories and a Prestige cosmetics rebound.

This short article was initially printed by TheStreet.