Bank of America Upgrades Ulta Beauty Stock to Buy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 10 2026
0mins
Source: Yahoo Finance
- Investment Appeal from Price Drop: Bank of America upgraded Ulta Beauty's stock rating from 'Neutral' to 'Buy' with a price target of $685, noting that the stock's over 13% year-to-date decline presents an attractive entry point, indicating the company's continued appeal relative to peers.
- Long-Term Competitive Advantages: Analyst Lorraine Hutchinson highlighted that Ulta Beauty's investment cycle is developing long-term competitive advantages, with expected improvements in cost discipline driving operating income growth and healthier free cash flow, thereby strengthening the company's market position.
- FY 2026 Performance Guidance: Ulta Beauty anticipates net sales growth of 6.0% to 7.0% and diluted EPS growth of 9.4% to 11.4% for FY 2026, reflecting the company's confidence in its future performance and positive growth outlook.
- Capital Return Strategy: The company returned $890.5 million of capital to shareholders through planned share repurchases, demonstrating its commitment to shareholder returns while also reflecting robust cash flow management.
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Analyst Views on ULTA
Wall Street analysts forecast ULTA stock price to rise
22 Analyst Rating
15 Buy
6 Hold
1 Sell
Moderate Buy
Current: 520.150
Low
450.00
Averages
647.83
High
780.00
Current: 520.150
Low
450.00
Averages
647.83
High
780.00
About ULTA
Ulta Beauty, Inc. is a specialty United States beauty retailer and the premier beauty destination for cosmetics, fragrance, skincare products, haircare products and salon services. The Company operates approximately 1,451 retail stores across 50 states and distributes products through its Website, which includes a collection of tips, tutorials, and social content. The Company’s business includes a differentiated assortment of approximately 29,000 beauty products across a variety of categories and price points, as well as a variety of beauty services, including salon services, in more than 1,400 stores predominantly located in convenient, high-traffic locations. It also offers digital experiences delivered through its Website, Ulta.com, and its mobile applications. The Company’s brands include Ulta Beauty Collection, about-face, Ariana Grande, CHANEL, FENTY BEAUTY by Rihanna, It Cosmetics, LolaVie, OUAI, PAT McGRATH LABS, Tula, and NYX Professional Makeup.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Long-Term Competitive Advantages: Analyst Lorraine Hutchinson highlighted that Ulta Beauty's investment cycle is developing long-term competitive advantages, with expected improvements in cost discipline driving operating income growth and healthier free cash flow, thereby strengthening the company's market position.
- FY 2026 Performance Guidance: Ulta Beauty anticipates net sales growth of 6.0% to 7.0% and diluted EPS growth of 9.4% to 11.4% for FY 2026, reflecting the company's confidence in its future performance and positive growth outlook.
- Capital Return Strategy: The company returned $890.5 million of capital to shareholders through planned share repurchases, demonstrating its commitment to shareholder returns while also reflecting robust cash flow management.
See More
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- Nvidia's Challenges: While tech stocks have performed well, Nvidia has emerged as a notable laggard, with expectations that CEO Jensen Huang's upcoming keynote at Computex in Taiwan could introduce new products and potentially shift this trend.
- Market Dynamics to Watch: Next week, Merck will review its cancer portfolio, while Palo Alto Networks and Ulta are set to report earnings; Cramer anticipates that these companies may be influenced by AI-driven market changes, particularly in cybersecurity.
- Employment Data Impact: The Labor Department's jobs report on Friday will shape expectations for interest rate cuts, with Cramer noting that the data needs to be weak enough to justify a rate cut from the Federal Reserve, which could influence investor decisions.
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- Brand Partnership: Ulta Beauty has announced a collaboration with Warner Bros Pictures to feature ads for Supergirl across social media and in-store experiences, aiming to connect the brand with one of this year's biggest cultural moments and enhance its market presence.
- Product Promotion: Ulta will launch three Supergirl-inspired beauty looks, including Power Glam, Grunge Romance, and Iconic Shimmer, and promote them through an interactive buying guide on its website, thereby increasing consumer engagement and interest.
- Market Events: In celebration of the film's world premiere, Ulta will host events in New York City, Los Angeles, Dallas, and Chicago, further boosting brand visibility and attracting more customers to participate in the promotional activities.
- Advertising Campaign: Ulta will run promotional spots featuring Supergirl star Milly Alcock across cinemas, social media, cable TV, and streaming channels, aiming to enhance brand awareness and drive sales through a multi-channel marketing strategy.
See More
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See More
Bank of America Upgrades Ulta Beauty Stock to Buy
- Investment Appeal from Price Drop: Bank of America upgraded Ulta Beauty's stock rating from 'Neutral' to 'Buy' with a price target of $685, noting that the stock's over 13% year-to-date decline presents an attractive entry point, indicating the company's continued appeal relative to peers.
- Long-Term Competitive Advantages: Analyst Lorraine Hutchinson highlighted that Ulta Beauty's investment cycle is developing long-term competitive advantages, with expected improvements in cost discipline driving operating income growth and healthier free cash flow, thereby strengthening the company's market position.
- FY 2026 Performance Guidance: Ulta Beauty anticipates net sales growth of 6.0% to 7.0% and diluted EPS growth of 9.4% to 11.4% for FY 2026, reflecting the company's confidence in its future performance and positive growth outlook.
- Capital Return Strategy: The company returned $890.5 million of capital to shareholders through planned share repurchases, demonstrating its commitment to shareholder returns while also reflecting robust cash flow management.
See More
