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Why Ulta Beauty Is a Still a 'Top Pick' Despite CEO Transition
ULTAUlta Beauty(ULTA) Investopedia·2025-01-07 20:20

Key Takeaways - Ulta Beauty announced CEO Dave Kimbell's retirement, but JPMorgan analysts do not view the transition as negative for the company [1] - JPMorgan reiterated Ulta Beauty as a "top pick" with a 480pricetarget,whilethestockwastradingat480 price target, while the stock was trading at 431.43, after surging 6.7% earlier in the session [1] Financial Performance and Outlook - Ulta Beauty raised its fiscal Q4 comparable sales and operating margin outlook to clarify that the CEO change was unrelated to Q4 performance [2] - A 1% increase in comparable sales and an operating margin slightly above the previously projected range imply Q4 EPS of 7.21,higherthanWallStreetsconsensusof7.21, higher than Wall Street's consensus of 6.76 [3] Leadership Transition - CEO Dave Kimbell has been succeeded by COO Kecia Steelman [2]