Ulta Beauty Inc (ULTA) Receives a Buy from Oppenheimer

By Carrie Williams

Oppenheimer analyst Rupesh Parikh maintained a Buy rating on Ulta Beauty Inc (ULTAResearch Report) today and set a price target of $375. The company’s shares opened today at $292.92.

Parikh noted:

“We overall view the Q3 results as mixed, which is very much the theme in our space this reporting season. Kylie Cosmetics is off to a strong start, and the company saw a modest improvement in the prestige cosmetics category, which bodes well for Q4 and beyond. However, GMs were below Street expectations driven primarily by a bigger than expected clearance headwind. At Q2 end, we observed a significant amount of clearance merchandise in-store, but we thought Q3 guidance had fully captured this headwind (see Exhibit 1 inside for a picture). We view this as a transitory headwind and not reflective of a lower margin profile for the company. We would take advantage of the pullback, and ULTA remains a top pick for us.”

According to TipRanks.com, Parikh is a 5-star analyst with an average return of 15.6% and a 61.3% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.

Ulta Beauty Inc has an analyst consensus of Moderate Buy, with a price target consensus of $319.40, implying a 9.0% upside from current levels. In a report issued on November 26, Nomura also maintained a Buy rating on the stock with a $305 price target.


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Based on Ulta Beauty Inc’s latest earnings release for the quarter ending July 31, the company reported a quarterly net profit of $148 million. In comparison, last year the company had a net profit of $105 million.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2018, Lorna Nagler, a Director at ULTA sold 2,000 shares for a total of $552,380.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Ulta Beauty, Inc. is a beauty retailer of cosmetics, fragrance, skin care products, hair care products, and salon services. It provide unmatched product breadth, value and convenience in a distinctive specialty retail environment. The company was founded in January 9, 1990 and its headquartered in Bolingbrook, IL.