11:12 AM EDT, 09/18/2025 (MT Newswires) -- Ulta Beauty ( ULTA ) is demonstrating improved execution under its new chief executive officer, Kecia Steelman, supported by stronger internal operations and a favorable competitive backdrop, UBS said Wednesday in a report.

Comparable sales accelerated in Q2, and the firm sees manageable comparisons in the second half, aided by a robust lineup of new products.

UBS said margin expansion remains a key opportunity for fiscal 2024, with selling, general, and administrative expenses expected to moderate. Share repurchases add further support to double-digit earnings growth, with fiscal 2027 earnings per share projected at $30.65 compared with the Street's $29.98.

With Ulta consistently outperforming conservative guidance, UBS said it expects the market to reward the company with a premium multiple.

UBS maintained its buy rating on Ulta's stock with a $680 price target.

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