A study of more than 500 UltaBeauty Inc(NASDAQ: ULTA) customers verifies the charm business’s big development chance, inning accordance with Guggenheim.
GuggenheimPartners’ Steven Forbes updated UltaBeauty’s stockranking from Neutral to Buy with a brand-new $260rate target. The stock was likewise called as Guggenheim’s “best idea.”
Guggenheim’s exclusive study of 536 woman Ulta customers throughout age, geographical areas and earnings discovered the following information points, Forbes stated in a Monday note:
- Only26 percent of participants store throughout all classifications, which suggests a “significant” chance for surrounding classification share growth.
- Thebusiness’s operating design of providing services throughout all rate varieties and classifications is plainly resonating with customers.
- Ultacontinues to acquire “significant traction” with more youthful age, consisting of millennials.
- Only12 percent of participants suggested they invested less at Ulta on a year-over-year basis, which suggests a strong consumer base.
- WhileAmazon com, Inc.(NASDAQ: AMZN) is resonating well with customers in charm items, it ranked 4th on the list when Ulta customers were asked where else they look for eminence cosmetics.
- Offeringdiscount rates to Ultimate Rewards members might assist in driving incremental sales in hard classifications like hair care and scents.
- Ulta’s growing e-commerce service need to continue to see “healthy” deal and ticket development.
Thestudy reveals that Ulta’s nonreligious development capacity is “undervalued,” with the stock trading at simply 10.3 x 2019 E EBITDA, Forbes stated.
Sharesof Ulta Beauty were trading greater by 3.83percent at the time of publication Monday.
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Guggenheim Survey Of Ulta Consumers Paints Bullish Picture by: Pamela Hendrix published: