Analysts at Jefferies increased their price target for ULTA Beauty (NASDAQ:ULTA) from $550.00 to $587.00, maintaining a Buy rating. This increase is due to the addition of new brands, which are expected to act as catalysts for growth. ULTA Beauty is also identified as a top stock pick for 2024.

The analysts pointed out that the current share price is an attractive investment opportunity, as it’s trading below its historical average, around 17.5 times versus the 10-year average of 23 times. The introduction of brands like Sol De Janeiro and Charlotte Tilbury is seen as providing short-term growth opportunities and potential for higher earnings. The prestige beauty market, where ULTA operates, is robust with high single to low double-digit percentage growth, mainly driven by makeup, which makes up about 45% of sales.

According to the analysts, there are no signs of a slowdown in this market segment in 2024. Observations during the holiday season showed strong performance and a significant increase in foot traffic, leading to the revised price target of $587.

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