Analysts Hike Price Targets on Booming Ulta Beauty Stock

Analysts have been overwhelmingly bullish toward the stock

by Emma Duncan

Published on Apr 15, 2019 at 11:31 AM

Shares of Ulta Beauty Inc (NASDAQ:ULTA) are up 1.7% at $350.86, thanks to some early morning bull notes. J. P. Morgan Securities raised its ULTA price target by $45 to $390, citing potential upside from reality star Kylie Jenner's makeup line, and said the cosmetics retailer is "well-positioned" for strong top-line performance.

Morgan Stanley also chimed in, lifting its price target by $20 to $375. Overall, analyst outlook was already bullish coming into today, with 16 of the 22 covering firms sporting "buy" or "strong buy" ratings. 

Ulta Beauty stock has been moving higher on the charts, so far up 56% since its Dec. 24 low of $224.43, and hitting a record peak of $355.73 one week ago. A quick pullback from here was contained at the equity's rising 20-day moving average, a line of support for the shares since the start of the year.

Digging deeper, short-term ULTA speculators are more put-skewed than normal. This is based on the security's Schaeffer's put/call open interest ratio (SOIR) of 1.14, which ranks in the 80th annual percentile. 

Lastly, now looks to be a prime time to bet on Ulta Beauty stock with options. Specifically, the security's Schaeffer's Volatility Index (SVI) of 23% stands stands in the 3rd percentile of its annual range. This means that near-term options are currently pricing in low volatility expectations. 

From Schaeffer's Pro Traders
Weekly Options Secrets Revealed

Direct from our Schaeffer's traders, your FREE guide to winning with weekly options!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Race for Pot Profits Is On
The race for marijuana profits is on... and one up-and-comer is taking the "Buffett" approach to profits.
2 Stocks Sinking on Healthcare Sector Uncertainty
Both names are seeing heavier-than-usual options activity
Bear Note Pushes Cronos Group Stock Lower
BofA-Merrill Lynch just initiated coverage with an "underperform" rating
The Race for Pot Profits Is On
The race for marijuana profits is on... and one up-and-comer is taking the "Buffett" approach to profits.