Ulta Beauty price target raised to $600 from $525 at Oppenheimer

Oppenheimer raised the firm’s price target on Ulta Beauty to $600 from $525 and keeps an Outperform rating on the shares. Looking towards FY24, the firm believes Ulta is well positioned to drive a comp re-acceleration and operating margins should bottom out in the low 14% range and gradually move higher from there. The shares also continue to trade at a discounted valuation at just 18-times Oppenheimer’s FY25 estimate, which is a positive outlier as many other higher quality names are now trading above historical averages. As a result, the firm sees the potential for further multiple expansion from here as comps re-accelerate. Ulta remains a top pick for Oppenheimer.