Ulta Beauty's (ULTA) fiscal Q2 consensus forecasts appear achievable, but management will likely reiterate its full-year 2026 targets amid ongoing uncertainty on the consumer and macroeconomic front, Oppenheimer said in a note Tuesday.
The company is expected to post its Q2 results Aug. 27.
"Management has taken a prudent approach to guidance so far this year, and we would expect the same on the Q2 print," the note said.
Oppenheimer said consensus forecasts for a 2.3% increase in comparable sales and earnings per share of $6.18 are "achievable," as it expects Ulta to "benefit from a still attractive beauty backdrop, ongoing newness, and traction with key company initiatives."
The investment firm also said recent data points indicate a "healthy beauty backdrop," with L'Oreal noting a continued North American acceleration in Q2.
Oppenheimer has an outperform rating on Ulta and a $650 price target.
Shares of Ulta Beauty were up 5.7% in Tuesday trading.
Price: $521.90, Change: $+28.57, Percent Change: +5.79%