Ulta Beauty (NASDAQ:ULTA) has just reported earnings and shares are now at a new 52 week low and falling farther. We question if there is a bottom in sight, but by all accounts the stock is still expensive despite the growth in online sales and earnings. Currently shares are down 10% here.
Following this news, analysts are scrambling and divided.
Telsey lowered its price target on Ulta to $300 from $360 as it reels in expectation in front of tough comparables.
Jefferies maintained a Buy rating, but reduces its price target to $300 from $350. “Weaning the market off extreme comp rates will take time,” writes analyst Stephanie Wissink.
BMO Capital downgrades Ulta to Market Perform on its view that risks are skewed to the downside. The PT is chopped to $235 from $345.
Cowen advises investors to buy the dip in Ulta’s share price. “We remain impressed with the stellar combination of mass and prestige beauty, 25.4mm Beauty club cardholders, and eCommerce growth which drove 340bps of comp. Shares could be weak on 3Q guide of $1.63 to $1.68 vs. street of $1.68, which we view as conservative,” tips analyst Oliver Chen.
All in all, we see upside, but want to wait for a real bottom formation, which may occur at a $200 floor.