Ulta Beauty price target raised to $635 from $572 at Piper Sandler

Piper Sandler analyst Korinne Wolfmeyer raised the firm’s price target on Ulta Beauty to $635 from $572 and keeps an Overweight rating on the shares. The firm notes the company is navigating well through a challenging consumer environment and proving to be one of the most defensive names in beauty, delivering consistent positive comp sales and margins several points ahead of pre-COVID. Piper believes forward expectations look prudent, if not conservative, with room for upward revisions throughout the year. Investor sentiment continues to be rather mixed, however, leaving valuation several turns weaker ending 2023 than starting 2023, it adds. This creates attractive opportunity for share appreciation via both earnings power and multiple expansion as confidence rebuilds and investors seek out quality, reliable holdings, the firm argues.