Aug. 29 at 4:13 PM
Morgan Stanley raised price targets for several U.S. retail stocks after better-than-expected Q2 results, citing broad sales growth despite margin pressures from tariffs and conservative guidance.
Price targets: DG
$125 (from
$115), DKS
$253 (from
$232), OLLI
$145 (from
$118), ULTA
$600 (from
$550).
Morgan Stanley noted solid sales growth across the board, with tariffs and conservative forecasts affecting margins. Analysts favor ULTA and DKS.
For ULTA, Q2 comparable sales rose 6.7% vs. 2.9% expected. The firm sees ~21x forward P/E as attractive and keeps Overweight rating.
For DKS, Overweight rating maintained;
$253 target implies 18% upside. Morgan Stanley calls DKS undervalued due to growth potential and market share gains, noting management’s cautious H2 outlook amid upcoming tariffs.
$DKS $ULTA $OLLI $DG