Ulta Beauty (NASDAQ:ULTA): Strong Buy Rating and Robust Q2 Performance Drive Optimistic Outlook

• Raymond James reiterated a Strong Buy rating for Ulta Beauty (NASDAQ:ULTA), setting a new price target of $700.00, indicating a potential upside of 29.61%.
• The company reported strong second-quarter results, with revenue of $3 billion and earnings per share of $6.55, both exceeding analyst expectations.
• Ulta Beauty raised its full-year financial outlook, projecting net sales growth between 6.7% and 7.2% and diluted earnings per share in the range of $28.70 to $29.00, driven by strong comparable sales and loyalty program expansion.

Ulta Beauty (NASDAQ:ULTA) is a major beauty retailer in the United States. The company provides a wide variety of cosmetics, skincare, and fragrance products from both mass-market and high-end brands. It operates through physical stores and an online platform, competing with other retailers like Sephora for a share of the beauty market.

On August 28, 2026, analyst Olivia Tong from Raymond James reiterated a Strong Buy rating on Ulta Beauty. A new price target of $700.00 was set for the stock. When this was announced, Ulta Beauty was trading at $540.10, which represents a potential upside of about 29.61% for the company's shares.

This positive rating is supported by strong second-quarter results. As highlighted by Proactive Investors, Ulta Beauty's revenue was $3 billion, which exceeded analyst estimates of $2.96 billion. Its earnings per share, the company's profit divided by its shares, increased by 13.3% to $6.55, also beating expectations.

Growth was driven by a 3.8% increase in comparable sales, a metric that tracks sales growth from existing stores. The company's loyalty program also expanded by 3% to approximately 47 million active members. These members are now spending more on average, which indicates strong customer retention and brand loyalty.

Following these results, Ulta Beauty raised its financial outlook for the full year, as reported by Business Wire. The company now projects net sales growth between 6.7% and 7.2%. It also increased its guidance for diluted earnings per share to a new range of $28.70 to $29.00.