Investing.com -- Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week.
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Ulta Beauty
What happened? On Monday, TD Cowen upgraded Ulta Beauty (NASDAQ:ULTA) to Buy with a $725 price target.
*TLDR: TD Cowen upgrades ULTA Buy. Needs TikTok, influencers, Gen Z.
What’s the full story? TD Cowen upgrades ULTA to Buy with a $725 target, betting that new CEO Kecia Steelman transforms this beauty box into something resembling actual growth. The analyst sees Steelman’s "operational expertise" fixing stores, supply chains, and whatever "cross-functional go-to-market alignment" means in corporate-speak.
The thesis: ULTA remains the dominant specialty beauty retailer with fat margins, 29,000 SKUs, and a loyalty program that actually works—essentially an asset manager for lipstick and mascara.
But here’s where it gets interesting. TD Cowen argues ULTA desperately needs to become TikTok’s beauty BFF, courting influencers while transforming stores into "wellness destinations"—because apparently selling makeup isn’t enough anymore. The analyst wants more "editorial marketing presence" and "community building," which translates to: stop being boring and start being where Gen Z discovers products.
They’re betting ULTA leverages its scale to lock down hot brands before competitors do, without letting them disappear into the retail abyss.
Classic retail turnaround story, except this time with better margins and shinier packaging.
Roblox
What happened? On Tuesday, Freedom Capital Markets initiated Roblox (NYSE:RBLX) at Hold with a $99 price target.
*TLDR: Roblox streams toward $9.5 billion bookings. Regulatory hellfire threatens growth momentum.
What’s the full story? Freedom Capital projects a 7.5x EV/bookings multiple on their FY27 $9.5 billion estimate, betting Roblox keeps printing money like a digital casino for kids. The analyst sees this gaming platform as the industry’s lone bright spot—democratizing video games while hoovering up 150+ million daily users and generating cash flows that make traditional publishers weep.
Q4 looks juiced thanks to gift card season, with bookings and DAUs rocketing 50% and 80% in FY25.
But here’s where the fairy tale gets ugly: multiple U.S. states are suing over safety failures, facial age verification is spooking users, and Freedom Capital spots "a bit soft" trends as the company cracks down on fake accounts. Margins face a squeeze as Roblox throws more money at developers and beefs up safety measures—essentially paying protection money against regulatory hellfire.
The analyst models FY25 bookings at $6.7 billion with 24.3% EBITDA margins, slightly above management’s suspiciously conservative guidance. Freedom Capital projects steady expansion through FY27, hitting $9.5 billion in bookings, though consensus dreams even bigger at $9.565 billion.
The real question lurking: whether Roblox can maintain its growth trajectory while navigating the minefield of child safety regulations and slowing user momentum.
Waters Corp.
What happened? On Wednesday, Wolfe Research upgraded Waters Corp. (NYSE:WAT) to Outperform with a $480 price target.
*TLDR: Wolfe upgrades undervalued WAT despite BD dilution. Management execution justifies higher valuation than today.
What’s the full story? Wolfe Research is upgrading WAT because apparently buying quality assets at a discount still works in this market as reports of value investing’s death have been greatly exaggerated (via Berkshire’s cash position overall being at record levels.).
The stock is trading at roughly 17x 2026 EV/EBITDA and 22.6x FCF, a 10-12% haircut to peers who frankly aren’t running half as tight a ship. Sure, the BD Life Sciences bolt-on might water down the organic growth story like cheap whiskey in a frontier saloon, but Wolfe’s analysts figure management knows what they’re doing.
The premium’s compressed from 25% to 15% post-deal, which seems about right for a company that just ate something that might give it indigestion. But here’s the thing: above-average core growth, beats on pro forma targets, gorgeous free cash flow, and a management team that actually delivers?
That cocktail’s worth more than today’s price, even if the BD acquisition makes the story marginally less pure.
Roku
What happened? On Thursday, Jefferies upgraded Roku (NASDAQ:ROKU) to Buy with a $135 price target.
*TLDR: Jefferies sees 20%+ growth, cleanest revision story.
What’s the full story? Jefferies smells blood in the water on Roku.
The analysts see the Street’s limp 15% year-over-year growth guess for 2026 Platform revenue as low-hanging fruit—try 20% or better once the DSP rockets fire (Amazon’s ramp, Trade Desk’s relentless march), political ad dollars flood in, subscriptions keep compounding, and that home-screen overhaul finally drops.
Management’s still swinging the cost-discipline axe hard enough that mid-single-digit opex growth can bankroll double-digit revenue for years. In a sector full of guidance cuts and excuse-making, Roku shapes up as the cleanest upward revision story on the board heading into 2026.
Citigroup
What happened? On Friday, JPMorgan upgraded Citigroup (NYSE:C) to Overweight with a $124 price target.
*TLDR: JPMorgan upgrades Citi, believes transformation story. Expects everything to be fixed eventually, somehow.
What’s the full story? JPMorgan throws Citigroup a lifeline, upgrading the perpetual turnaround story to Overweight because—get this—they believe in transformation. The analysts figure Citi’s revenue concentration makes it the perfect casino bet on "solid economy and strong markets," which surely nothing could disrupt.
Here’s the punchline: JPMorgan expects Citi to simultaneously fix its efficiency ratio, satisfy its regulatory overlords on those pesky consent orders, eliminate stranded costs like some corporate Marie Kondo, and somehow monetize that albatross DTA. All while outperforming peers on RoTCE—because if there’s one thing markets reward, it’s a bank promising to get its house in order tomorrow.
The analysts seem convinced these improvements will "continue over time," that delightfully vague phrase meaning somewhere between next quarter and the heat death of the universe.
