Should I Buy ULTA? ULTA 2026 Analysis

Should You Buy Ulta Beauty Inc (ULTA) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

631.100

1 Day change

-1.11%

52 Week Range

695.340

Analysis Updated At

2026/01/26

Ulta Beauty (ULTA) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The stock has strong analyst support with multiple price target increases, positive growth catalysts like international expansion, and solid financial performance despite a slight dip in net income. The technical indicators and options sentiment also suggest bullish momentum, making it a suitable long-term investment.

Technical Analysis

The stock is in a bullish trend with MACD above 0 and positively contracting, RSI at 85.415 indicating overbought conditions, and bullish moving averages (SMA_5 > SMA_20 > SMA_200). Key resistance levels are at R1: 689.331 and R2: 699.246, while support levels are at S1: 657.236 and S2: 647.321.

Options Data

Bearish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Options data shows a slightly bullish sentiment with a lower put-call volume ratio and increased trading activity, indicating heightened market interest.

Technical Summary

Sell

Buy

Positive Catalysts

Analysts have consistently raised price targets, with Raymond James upgrading to Strong Buy and a target of $
Ulta's international expansion into the Middle East, starting with its UAE store opening, signals growth opportunities.
Financials show a 12.95% YoY revenue increase and improved gross margin (+1.74%).

Neutral/Negative Catalysts

Congress members have sold ULTA stock recently, indicating cautious sentiment.
Net income dropped by 4.67% YoY in Q3
RSI indicates overbought conditions, suggesting potential short-term pullback risks.

Financial Performance

In Q3 2026, revenue increased by 12.95% YoY to $2.857 billion, gross margin improved to 40.44% (+1.74%), and EPS remained flat at 5.14. However, net income dropped by 4.67% YoY to $230.875 million.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are highly bullish on ULTA, with multiple price target increases (ranging from $680 to $790) and upgrades to Strong Buy from firms like Raymond James. Analysts cite strong growth potential, new initiatives, and international expansion as key drivers.

22 Analyst Rating

Wall Street analysts forecast ULTA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ULTA is 647.83 USD with a low forecast of 450 USD and a high forecast of 780 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

15 Buy

6 Hold

1 Sell

Moderate Buy

Current: 638.210

Low

450

Averages

647.83

High

780

Current: 638.210

Low

450

Averages

647.83

High

780

Piper Sandler

Overweight

maintain

$615 -> $775

AI Analysis

2026-01-27

New

Reason

Piper Sandler

Price Target

$615 -> $775

AI Analysis

2026-01-27

New

maintain

Overweight

Reason

Piper Sandler raised the firm's price target on Ulta Beauty to $775 from $615 and keeps an Overweight rating on the shares. With a solid Holiday and square-footage growth accelerating, the firm estimates Space NK sales will be up high 20's in 2026, which along with strength at core, should yield upside to sellside estimates. For Q4 2025, Piper models 5% comparable store sales, ahead of guidance for 2.5%-3.5%. The firm cites momentum in the business and the category for the price target increase.

TD Cowen

Buy

maintain

$725 -> $775

2026-01-21

Reason

TD Cowen

Price Target

$725 -> $775

2026-01-21

maintain

Buy

Reason

TD Cowen raised the firm's price target on Ulta Beauty to $775 from $725 and keeps a Buy rating on the shares. The firm adjusted targets in the beauty space as part of a Q4 preview. TD sees the most upside potential at Estee Lauder on improving China trends and sustained U.S. momentum. Beauty trends appear solid, which should drive revenue upside for all companies, the analyst tells investors in a research note.

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ULTA Should I Buy

ULTA Should I Buy

Should You Buy Ulta Beauty Inc (ULTA) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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