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Analysts Hike Price Targets on Booming Ulta Beauty Stock

Analysts have been overwhelmingly bullish toward the stock

Managing Editor
Apr 15, 2019 at 11:31 AM
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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. 

 

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