Target and Ulta Stocks Show Mixed Trends Amid Economic Pressures

NEW YORK (AP) — Shares of Target and Ulta have displayed divergent trends as investors react to economic pressures and company forecasts.

Target’s stock rose more than 2% in recent trading, landing around $95. This price is still below its Tuesday closing price of just above $98, before it reported a reduced sales forecast for the year and an expanded profit outlook. These developments spurred concerns among investors, leading to a price dip to below $91.

In an effort to reassure stakeholders, Target has established a new team, headed by its COO, aimed at accelerating growth initiatives. Despite this, Target shares have plummeted nearly 30% this year, leading analysts to maintain a cautious stance. Most analysts tracked by Visible Alpha hold neutral ratings, with the average target at approximately $106, still indicating a roughly 14% premium over recent prices.

The situation worsened when Bank of America downgraded Target to neutral, citing ongoing uncertainty. Analysts noted, “We see increased uncertainty as top-line weakness continues and the timing of same-store sales recovery gets pushed out,” highlighting that declining sales lead to higher markdowns and margin pressure.

In contrast, Ulta Beauty appears resilient in the same market environment. The cosmetic retailer’s stock has attracted investor interest, gaining roughly 36% since mid-March, partly due to robust earnings and fresh leadership. Its shares currently stand at $420.50, up over 8% from last year.

On Tuesday, Oppenheimer upgraded Ulta’s rating to “outperform” and raised the price target to $465, noting the company is well-positioned to meet its financial goals despite economic headwinds. Analysts expect a small 0.2% increase in year-over-year comparable store sales when Ulta reports its first-quarter results on May 29.

As stock fluctuations continue, the outlook remains mixed for both retail giants as they navigate a volatile economic landscape.