Ulta Beauty shares jumped 3% to $533.72 in pre‑market trading after BofA upgraded the stock to “Buy”.
BofA set a new price target of $685, citing steady sales growth, margin improvement and stronger free‑cash‑flow prospects.
The brokerage expects multiple expansion from enhanced cost discipline, boosting operating income growth and valuation.
Ulta Beauty is down 14.4% year‑to‑date, but the upgrade highlights its extensive product range, store footprint and loyalty program.