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Oppenheimer adds Ulta Beauty shares back to top pick status

Oppenheimer re-added Ulta Beauty back to top pick status after hosting management. Commentary suggests a still healthy beauty category with strong levels of innovation, and Ulta is pleased with recent brand launches while upbeat on its innovation pipeline for the second half of 2024, the analyst tells investors in a research note. The firm says the company is focused on sales and traffic driving initiatives to defend its strong market share position amid current competitive dynamics. Opco sees a “very compelling risk/reward scenario” for the shares, with downside risk to the $370s and upside to its $475 price target over the next 12-18 months. It believes consensus estimates are largely de-risked with Ulta’s 2024 outlook now more realistic.

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