Latest news with #stockupgrade
Yahoo
30-05-2025
- Business
- Yahoo
Ulta Beauty, Inc. (ULTA): A Bull Case Theory
We came across a bullish thesis on Ulta Beauty, Inc. (ULTA) by @wallstengine on X (Twitter). In this article, we will summarize the bulls' thesis on ULTA. Ulta Beauty, Inc. (ULTA)'s share was trading at $407.04 as of 23rd May. ULTA's trailing and forward P/E were 16.06 and 17.89 respectively according to Yahoo Finance. A close-up of a customer's hands selecting beauty products from an online retailer. Ulta Beauty (ULTA) has been upgraded to Buy by Goldman Sachs with a price target raised to $423 from $384, marking a turning point in sentiment after a cautious stance since December 2022. The firm's previous hesitation stemmed from concerns about a slowdown in beauty category growth and erosion in prestige market share. However, entering FY25, Goldman believes these headwinds have bottomed, setting the stage for a rebound. The upgrade is driven by multiple catalysts. First, comp momentum is expected to accelerate in Q1 and throughout FY25, backed by encouraging quarter-to-date trends, an uptick in monthly active users since November 2024, and increased consumer engagement, as evidenced by rising search traffic around ULTA's popular '21 Days of Beauty' campaign. Second, competitive pressures from peers like Sephora may be easing, with ULTA showing improvement in new product rollouts, a key factor in regaining share and maintaining relevance with beauty consumers. Third, Goldman sees the company's FY25 guidance, especially on margin assumptions, as conservative. Given ULTA's history of outperforming on SG&A efficiency, there could be meaningful upside to profitability. Finally, from a valuation standpoint, the stock trades at 15.8x forward earnings, a discount to its three-year average of 17.9x, making it an attractive entry point. With consumer engagement improving, competitive dynamics stabilizing, and management conservatism in guidance offering potential beats, ULTA presents a compelling risk/reward setup for investors. Goldman's view signals a potential inflection in sentiment, as multiple tailwinds align to support reacceleration in both fundamentals and the stock's multiple. Previously, we have covered Ulta Beauty, Inc. (ULTA) in January 2025 wherein we summarized a bullish thesis by somalley3 on the Value Investing subreddit. The user highlighted the company's strong brand, loyal customer base, and unique positioning as the only retailer combining mass-market and prestige beauty products. Despite short-term challenges and a post-pandemic slowdown, the article argued that ULTA's solid fundamentals, efficient capital allocation, and expansion opportunities—particularly through Target and potential international growth—made the stock undervalued and attractive for long-term investors. Since our last coverage, the stock is down 6.41% as of 26th May. Ulta Beauty, Inc. (ULTA) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held ULTA at the end of the fourth quarter which was 40 in the previous quarter. While we acknowledge the risk and potential of ULTA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ULTA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
25-05-2025
- Business
- Yahoo
Redburn Upgrades Charles River Laboratories (CRL) to Buy, Cuts PT
On May 23, Redburn Atlantic turned bullish on Charles River Laboratories International, Inc. (NYSE:CRL) as it upgraded its stock from 'Neutral' to 'Buy,' despite marginally reducing the price objective to $182 from $188. The upgrade was seen off the back of an improvement in demand in Charles River Laboratories International, Inc. (NYSE:CRL)'s Discovery and Safety Assessment (DSA) business. Furthermore, Elliott Management is the company's largest investor. This, along with the announcement of a comprehensive strategic review, is seen as a catalyst for future performance. A laboratory scientist surrounded by drug-discovery equipment and resources. Also, the valuation profile of Charles River Laboratories International, Inc. (NYSE:CRL) is being aided by its leading position in the broader market and expectation of a growth trajectory after the demand normalizes. Additionally, the firm believes that its Q1 2025 report demonstrated the initial signs of improvement in demand. Redburn Atlantic opines that the stock's current valuation hints at a 36% discount to its 10-year average historical forward multiple. The signs of demand stabilization were highlighted by a strong improvement in DSA booking activity. Charles River Laboratories International, Inc. (NYSE:CRL) believes that its long-standing hallmarks of advancing scientific innovation and driving greater efficiency in the clients' drug development programs are expected to present numerous future opportunities. Charles River Laboratories International, Inc. (NYSE:CRL) is engaged in providing drug discovery, non-clinical development, and safety testing services. While we acknowledge the potential of CRL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Sign in to access your portfolio
Yahoo
24-05-2025
- Business
- Yahoo
Redburn Upgrades Charles River Laboratories (CRL) to Buy, Cuts PT
On May 23, Redburn Atlantic turned bullish on Charles River Laboratories International, Inc. (NYSE:CRL) as it upgraded its stock from 'Neutral' to 'Buy,' despite marginally reducing the price objective to $182 from $188. The upgrade was seen off the back of an improvement in demand in Charles River Laboratories International, Inc. (NYSE:CRL)'s Discovery and Safety Assessment (DSA) business. Furthermore, Elliott Management is the company's largest investor. This, along with the announcement of a comprehensive strategic review, is seen as a catalyst for future performance. A laboratory scientist surrounded by drug-discovery equipment and resources. Also, the valuation profile of Charles River Laboratories International, Inc. (NYSE:CRL) is being aided by its leading position in the broader market and expectation of a growth trajectory after the demand normalizes. Additionally, the firm believes that its Q1 2025 report demonstrated the initial signs of improvement in demand. Redburn Atlantic opines that the stock's current valuation hints at a 36% discount to its 10-year average historical forward multiple. The signs of demand stabilization were highlighted by a strong improvement in DSA booking activity. Charles River Laboratories International, Inc. (NYSE:CRL) believes that its long-standing hallmarks of advancing scientific innovation and driving greater efficiency in the clients' drug development programs are expected to present numerous future opportunities. Charles River Laboratories International, Inc. (NYSE:CRL) is engaged in providing drug discovery, non-clinical development, and safety testing services. While we acknowledge the potential of CRL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Stifel Upgrades Planet Fitness (PLNT) Stock to Buy, Raises PT
On May 22, Stifel analysts upped Planet Fitness, Inc. (NYSE:PLNT)'s stock from 'Hold' to 'Buy,' increasing the price objective to $120 from the prior target of $82. The upgrade comes after an evaluation of its recent performance and expected growth catalysts. The analysts have noted stabilized gross joins and numerous factors that can fuel comparable sales to mid-to-high-single-digit growth in the upcoming years. Planet Fitness, Inc. (NYSE:PLNT) continues to focus on improving marketing strategies, which analysts opine can be optimized to see better results. A smiling person in sports gear testing out a piece of new fitness equipment. Additionally, the firm expects that Planet Fitness, Inc. (NYSE:PLNT) will increase its Black Card pricing. This can result in a 3% - 4%-point benefit to its comparable sales (comps). Its efforts focused on enhancing the Black Card Spa experience have been regarded as a favourable move. Stifel upped its comp and unit growth estimates for Planet Fitness, Inc. (NYSE:PLNT) as it anticipates sustained member growth and a multi-year pricing tailwind to fuel performance. Because of the strength and durability of its model, the company delivered healthy growth in Q1 2025 despite higher volatility in the macroeconomic environment. Its total revenue went up by 11.5% YoY to $276.7 million. Planet Fitness, Inc. (NYSE:PLNT) is engaged in franchising and operating fitness centers under the Planet Fitness brand. While we acknowledge the potential of PLNT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLNT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Automotive
- Yahoo
RBC Upgrades Dana (DAN) Stock to Outperform, Lifts PT
On May 22, RBC Capital Markets analyst Tom Narayan upped Dana Incorporated (NYSE:DAN)'s stock from 'Sector Perform' to 'Outperform', while raising the price objective to $20.00 from $14.00. This upgrade comes on the heels of expectations that Dana Incorporated (NYSE:DAN) will announce its Off-Highway (OH) deal in June. This will result in positive outcomes and potentially higher capital returns. Furthermore, the analyst believes that even without the deal, the company's core business fundamentals remain strong, and it seems that the market is not fully appreciating this. A modern commercial vehicle on the road, its engine powered by the company's drive system. The sale of Dana Incorporated (NYSE:DAN)'s Off-Highway business remains underway with a competitive process. It continues to execute its cost-savings initiative and has adopted steps focused on accelerating the realization of its $300 million plan. The overall market sentiment related to tariffs continues to become more favorable, and Dana Incorporated (NYSE:DAN) remains well-placed in this area due to lower exposure in comparison to its automotive peers, says Narayan. This gives the company a relative advantage in the broader market, which remains sensitive to international trade issues. Furthermore, the potential deal can provide the company an opportunity to return additional capital to its shareholders. Dana Incorporated (NYSE:DAN) offers power-conveyance and energy-management solutions for vehicles and machinery. While we acknowledge the potential of DAN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DAN and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None.
