Ulta Beauty Price Target Lowered by Barclays

On March 16, 2025, analysts at Barclays downgraded the price target for Ulta Beauty (NASDAQ:ULTA) from $445.00 to $327.00. This adjustment was communicated in a research report directed at clients and investors. Barclays has designated the stock with an “equal weight” rating, indicating a neutral outlook on the specialty retailer's performance. The new price target suggests a possible decline of 8.53% from Ulta's closing price prior to this announcement.

Other analysts have also recently updated their views on Ulta Beauty. TD Cowen raised their target price for the company from $450.00 to $480.00, maintaining a “hold” rating in a report published on January 8. Conversely, JPMorgan Chase & Co. lowered their price target from $480.00 to $475.00, but maintained an “overweight” rating. Oppenheimer also revised their target, increasing it from $505.00 to $515.00 and assigning an “outperform” rating. Meanwhile, Wells Fargo reduced their price target from $360.00 to $310.00 and set an “underweight” rating. Lastly, DA Davidson lowered their price target from $510.00 to $415.00 while keeping a “buy” rating.

Currently, one analyst has given Ulta Beauty a sell rating, while twelve others have issued hold ratings, and another twelve have rated it as a buy. Data from MarketBeat.com reveals that Ulta has an average rating of “Hold” and an average price target of approximately $431.13.

Ulta Beauty's Market Performance

As of Friday, shares of Ulta Beauty traded at $357.48. The company boasts a market capitalization of $16.58 billion, with a price-to-earnings ratio of 14.30 and a price-to-earnings-growth ratio of 0.89. Its stock has experienced fluctuation within the past year, with a low of $309.01 and a high of $544.36. Moving averages for Ulta's stock show a fifty-day average of $385.01 and a 200-day average of $386.80.

Recently, the company reported quarterly earnings on March 13. Ulta Beauty achieved earnings per share of $8.46, exceeding analyst estimates of $7.13 by $1.33. The quarterly revenue reached $3.49 billion, slightly exceeding the expected $3.47 billion. While this signifies a robust performance in one quarter, Ulta's revenue represents a decline of 1.9% compared to the same period the previous year, where it reported earnings of $8.08 per share. Current projections suggest that the company will post earnings per share of 23.96 for the ongoing fiscal year.

Institutional Investment Activity

In the realm of institutional investments, numerous hedge funds have adjusted their holdings in Ulta Beauty. Smartleaf Asset Management LLC increased their stake by 28.7% during the last quarter, now holding 166 shares valued at approximately $72,000. Integrated Investment Consultants LLC initiated a new position in Ulta during the third quarter with an investment around $4,480,000. Thrivent Financial for Lutherans significantly boosted its holdings by 382.5% during the same quarter, acquiring an additional 8,481 shares, bringing their total to 10,698 shares valued at around $4,163,000. Advisors Asset Management Inc. and Blueshift Asset Management LLC also increased their positions in Ulta during the quarter, with 17,531 shares and 8,218 shares in their portfolios, respectively. In total, 90.39% of Ulta's stock is held by institutional investors.

Overview of Ulta Beauty

Ulta Beauty, Inc. operates as a specialty beauty retailer throughout the United States. The company provides various branded and private-label beauty products, which include cosmetics, skincare, haircare, fragrance, and salon tools. These products are available through Ulta's retail stores, online platforms, and mobile applications.

Ulta, Barclays, Stocks