Ulta Beauty Inc
ULTA: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$661.00 | Lcbtpl | Zyjkrrtxks |
Narrow-Moat Ulta’s Q1 Looks Good as Beauty Demand Holds Strong; Shares Expensive
Despite higher costs and fears that inflation could dampen consumer spending, Ulta Beauty posted strong results in 2022’s first quarter as makeup sales (both prestige and mass) have recovered to pre-pandemic levels. We expect to lift our fair value estimate of $305 by a mid-single-digit percentage, but view Ulta’s shares (up about 7% in postmarket trading) as overvalued.