Jun. 10, 2025 1:03 PM ETUlta Beauty, Inc. (ULTA) StockULTADOCSHAH FINANCIAL2.67K FollowersSummaryUlta remains a high-quality business with strong fundamentals, loyal customers, and a pristine balance sheet, now trading at a good—not deep value—price.The 2025 investment thesis centers on margin expansion, not top line growth; operational improvements could lift margins from 14% back to 16%, unlocking shareholder value.Ulta’s future growth levers include a high-margin media business, international expansion, new product categories, and continued buybacks, but risks remain around execution and competition.Fair value is estimated at $530 per share, offering ~15% upside; while downside risk is limited, the upside is moderate unless operational initiatives exceed expectations.Sofia Zhuravets/iStock via Getty ImagesIntroductionNow that you all have seen my new girlfriend in the main image, it's worth mentioning that almost exactly one year ago, I published an article on Ulta Beauty (NASDAQ:ULTA) using my signature “GreatThis article was written byDOCSHAH FINANCIAL2.67K FollowersDocShah Financial, LLC is a full service registered investment advisory firm. To have your portfolio created or reviewed by Raul Shah, please click on our website link below. Disclaimer: All writing presented is solely for entertainment purposes and not financial advice. Neither DocShah Financial nor its representatives are responsible for any financial outcome which may occur. We do not give out investment advice to the public nor any any individual, unless they are a client under our advisory services and subject to the terms and conditions which apply. www.docshahfinancial.comAnalyst’s Disclosure:I/we have a beneficial long position in the shares of ULTA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.This article is for informational purposes only and is not intended as a recommendation. The information presented here is based on publicly available data, and I have no knowledge of your individual financial circumstances. It should not be construed as a solicitation to become a client of DocShah Financial nor does it establish any advisory relationship between you, the reader, and DocShah Financial. It's important to note that conflicts of interest may exist, and I or my clients may have holdings in the stocks discussed and are subject to change at any time without prior notice. Any decision to invest should be based on your own research and consultation with a qualified financial advisor. Investing involves risks, and past performance is not indicative of future results. DocShah Financial or I may stand to gain from stock purchases, and readers should carefully consider their own risk tolerance and financial situation before making any investment decisions. You are fully responsible for any investment outcome.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You