Ulta Beauty (NASDAQ:ULTA) Given New $700.00 Price Target at Morgan Stanley

Ulta Beauty (NASDAQ:ULTA) had its price objective dropped by research analysts at Morgan Stanley from $750.00 to $700.00 in a report released on Friday,Benzinga reports. The firm currently has an “overweight” rating on the specialty retailer’s stock. Morgan Stanley’s target price indicates a potential upside of 25.63% from the stock’s previous close.

Several other equities research analysts have also recently weighed in on the stock. Raymond James Financial reaffirmed a “strong-buy” rating on shares of Ulta Beauty in a research report on Tuesday. B. Riley Financial reissued a “neutral” rating on shares of Ulta Beauty in a research note on Monday, December 8th. TD Cowen lowered their target price on Ulta Beauty from $775.00 to $750.00 and set a “buy” rating for the company in a report on Friday. UBS Group lifted their price target on Ulta Beauty from $690.00 to $780.00 and gave the company a “buy” rating in a report on Wednesday, January 7th. Finally, Telsey Advisory Group upped their price objective on Ulta Beauty from $640.00 to $715.00 and gave the stock an “outperform” rating in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Ulta Beauty has an average rating of “Moderate Buy” and an average price target of $635.12.

Ulta Beauty Trading Down 10.8%

Shares of ULTA traded down $67.51 during midday trading on Friday, reaching $557.19. 961,948 shares of the stock were exchanged, compared to its average volume of 557,927. The company has a market capitalization of $24.72 billion, a P/E ratio of 21.35, a PEG ratio of 3.04 and a beta of 0.82. Ulta Beauty has a 52 week low of $323.36 and a 52 week high of $714.97. The company’s 50 day moving average is $667.28 and its two-hundred day moving average is $586.77.

Ulta Beauty (NASDAQ:ULTA) last released its quarterly earnings data on Thursday, March 12th. The specialty retailer reported $8.01 earnings per share for the quarter, beating the consensus estimate of $7.93 by $0.08. Ulta Beauty had a return on equity of 46.33% and a net margin of 9.93%.The firm had revenue of $3.90 billion during the quarter, compared to the consensus estimate of $3.81 billion. During the same period in the previous year, the company posted $8.46 earnings per share. The firm’s quarterly revenue was up 11.8% on a year-over-year basis. Ulta Beauty has set its FY 2026 guidance at 28.050-28.550 EPS. On average, sell-side analysts expect that Ulta Beauty will post 23.96 EPS for the current year.

Institutional Trading of Ulta Beauty

Hedge funds and other institutional investors have recently made changes to their positions in the business. Optimize Financial Inc grew its stake in Ulta Beauty by 1.4% during the 4th quarter. Optimize Financial Inc now owns 1,176 shares of the specialty retailer’s stock worth $711,000 after buying an additional 16 shares during the last quarter. MassMutual Private Wealth & Trust FSB raised its stake in Ulta Beauty by 6.9% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 265 shares of the specialty retailer’s stock valued at $160,000 after buying an additional 17 shares during the last quarter. Sound Income Strategies LLC raised its stake in Ulta Beauty by 13.1% in the fourth quarter. Sound Income Strategies LLC now owns 147 shares of the specialty retailer’s stock valued at $98,000 after buying an additional 17 shares during the last quarter. Legacy Advisors LLC boosted its holdings in Ulta Beauty by 1.2% in the fourth quarter. Legacy Advisors LLC now owns 1,543 shares of the specialty retailer’s stock worth $934,000 after acquiring an additional 18 shares in the last quarter. Finally, State of Wyoming boosted its holdings in Ulta Beauty by 10.5% in the third quarter. State of Wyoming now owns 211 shares of the specialty retailer’s stock worth $115,000 after acquiring an additional 20 shares in the last quarter. Hedge funds and other institutional investors own 90.39% of the company’s stock.

Key Stories Impacting Ulta Beauty

Here are the key news stories impacting Ulta Beauty this week:

• Positive Sentiment: Q4 revenue and digital strength — Ulta posted $3.9B in Q4 sales (+11.8% YoY) and modest beats on revenue and EPS, driven in part by double‑digit e‑commerce growth and AI personalization efforts that boosted online demand. Press Release
• Positive Sentiment: Digital / younger customer strategy — Management emphasized investments in AI and a TikTok‑led digital push under new leadership to attract younger, affluent shoppers, a strategy that analysts say could drive longer‑term customer acquisition. Reuters: TikTok push
• Neutral Sentiment: Product/partnership catalysts — New exclusives (e.g., Rare Beauty rollout, Luna Bronze expansion) and promotional events supported traffic and higher average ticket, but these are incremental versus the margin and guidance story. Yahoo: Product launches
• Negative Sentiment: Guidance disappointed on profitability and comps — Ulta’s FY2026 guidance signaled slower comparable‑store sales and profit pressure; management flagged increased advertising and other investments that will compress margins. That guidance drove the bulk of the market reaction. Reuters: Guidance
• Negative Sentiment: Margin and cost pressure in Q4 — Operating margin and EPS declined YoY as SG&A rose (~23% YoY) from higher marketing, incentive comp and strategic spend; investors are worried about deleverage if sales slow. QuiverQuant: Margin analysis

About Ulta Beauty

Ulta Beauty, Inc (NASDAQ: ULTA) is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.

The retailer’s product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.