Ulta Beauty shares rise 3% after Bank of America upgrades rating to Buy with $685 price target.

Ulta Beauty's stock gained about 3% following an upgrade by Bank of America from Neutral to Buy, maintaining a $685 price target. The upgrade reflects confidence in Ulta's investments in personalization, supply chain, digital capabilities, and international expansion, which are expected to improve profitability and operating income growth starting fiscal 2026. Bank of America highlighted Ulta's strong loyalty program and broad product range as key competitive advantages. The firm also raised earnings per share estimates and noted an increased share repurchase plan, signaling strong capital return prospects.