TD Cowen analyst Oliver Chen maintains $Ulta Beauty (ULTA.US)$ with a hold rating, and maintains the target price at $480.
According to TipRanks data, the analyst has a success rate of 52.7% and a total average return of 6.3% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Ulta Beauty (ULTA.US)$'s main analysts recently are as follows:
Following the announcement of Kecia Steelman as CEO, succeeding Dave Kimbell, and a promising holiday season report, it is forecasted that Q4 comparable store sales will be modestly up and operating margins will surpass the earlier high-end guidance. The expectation for Q4 EPS has been revised upward, reflecting a favorable preannouncement. However, it should be noted that margins are anticipated to decrease by 200 basis points year-over-year in Q4, and by 180 points for FY24.
After four years at the helm, Ulta Beauty's CEO Dave Kimbell is set to retire, with COO Kecia Steelman stepping into the role effective immediately. The transition, though unexpected, positions Steelman as a suitable successor according to analysts. Ulta has also revised its Q4 guidance, expecting a slight increase in comparable store sales, contrary to a consensus prediction of a 1.2% decline, and anticipates an EBIT margin higher than previously forecasted. This suggests that the company managed to achieve these positive comps without heightened promotions. Analysts now view the easing of competitive pressures as a positive, suggesting a more optimistic outlook for fiscal year 2025.
Ulta Beauty's announcement that CEO Dave Kimball will retire was accompanied by positive updated guidance, which is encouraging for the company's future prospects, notably in terms of positive comparable store sales. However, concerns persist regarding the company's high valuation and ongoing competitive pressures.
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