Bank of America Upgrades Ulta Beauty (ULTA) Stock

Ulta Beauty, Inc. (NASDAQ:ULTA) is one of the Unstoppable Stocks to Buy in 2026. On May 5, Bank of America upgraded the company’s stock to “Buy” from “Neutral,” with the price target of $685. It noted that the recent decline in the share price resulted in an attractive entry point. The firm believes that the high-quality compounder continues to trade at a discount to its peers. Notably, Ulta Beauty, Inc. (NASDAQ:ULTA)’s stock price declined by more than ~13% on a YTD basis.

Bank of America Upgrades Ulta Beauty (ULTA) Stock

The firm’s analyst, Lorraine Hutchinson, highlighted that the company’s investment cycle has been developing long-term competitive advantages. Notably, the firm believes that improvement in cost discipline is expected to drive operating income growth and healthier FCF.

Ulta Beauty, Inc. (NASDAQ:ULTA) provided FY 2026 guidance, where it expects net sales growth of 6.0% – 7.0% and diluted EPS growth of 9.4% – 11.4%. The company returned $890.5 million of capital to shareholders via planned share repurchases.

Ulta Beauty, Inc. (NASDAQ:ULTA) operates as a specialty beauty retailer.

While we acknowledge the risk and potential of ULTA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ULTA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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