No fewer than eight analysts chimed in with price-target cuts after Ulta's earnings whiff
Ulta Beauty Inc (NASDAQ:ULTA) stock is down 9.4% to trade at $565.79 at last glance, after the cosmetics retailer announced worse-than-expected earnings for the first quarter, while revenue came in above estimates. The company also issued a disappointing annual profit forecast due to higher marketing expenses, noting 'global conflicts' could pressure consumers who are now focused on value.
In response, eight analysts cut their price objectives, including Wells Fargo to $475 from $400. Analysts lean bullish toward the equity, with 16 of the 26 in coverage sporting a "buy" or better rating, while the 12-month consensus target price of $674.11 is an 18.4% premium to current levels. In other words, there's plenty of room for additional bear notes.
Shares earlier breached a familiar floor at the $620, which had contained pullbacks from a Feb. 18, record high of $714.97. Despite still boasting an 81.9% year-over-year lead, ULTA is pacing for its worst day since April 2024 and trading at its lowest level since December.
Options volume is already running at 10 times the intraday average amount, with 5,273 calls and 4,915 puts traded so far today. The most active contract is the weekly 3/13 545-strike put, where new positions are being bought to open. This suggests investors expect more downside for ULTA by today's close, when these contracts expire.