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© Reuters. JPMorgan sees Ulta Magnificence (ULTA) EPS ‘properly forward’ of consensus
By Sam Boughedda
Ulta Magnificence (NASDAQ:) is about to report its third-quarter earnings after the shut on December 1, and JPMorgan raised its worth goal on the inventory to $535 from $510 per share forward of the discharge, believing the corporate will report earnings properly above consensus.
Ulta Magnificence shares are up over 2% thus far on Monday.
Analysts, who maintained an Obese ranking on the inventory, advised buyers the agency is elevating its Q3 comp/EPS properly forward of consensus whereas it expects extra prudence within the firm’s steerage.
“Given ongoing share of pockets shifts again to experiences, accelerating pricing, and our knowledge evaluation, we’re elevating our 3Q comp forecast to 13% (vs. 7% beforehand and the Road’s 8% with the buyside much like our forecast, per our conversations). Our up to date 3Q EPS forecast of $4.66 can be well-ahead of $4.11 per Consensus Metrix,” defined JPMorgan.
Nonetheless, resulting from slower tendencies within the quarter-to-date, “most troublesome” 2Y comparisons of the yr in November, normalized vacation purchasing seasonality, and a softening client, JPMorgan count on ULTA to solely elevate its FY information to replicate the Q3 upside, whereas in each Q1 and Q2 2022, they raised for QTD.
“The corporate had beforehand guided to LSD comps in 4Q whereas the Road is at 4.7%, which might indicate guiding beneath however we have a look at this as prudence. Certainly, recall each Nov 2020 and 2021 benefitted from re-opening into Thanksgiving celebrations/journey that was then stunted by a COVID-19 resurgence,” the analysts added.
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