10:49 AM EDT, 08/12/2025 (MT Newswires) -- Ulta Beauty's ( ULTA ) "Beauty Unleashed" growth plan is showing early results, from "solid" in-store execution to enhanced digital initiatives such as the recent launch of subscribe and save, Oppenheimer said in a report Tuesday.

Oppenheimer analysts said they "believe management's turnaround efforts remain in the very early stages," adding that "strong momentum" could lead to another Q2 earnings beat and potentially higher fiscal 2025 guidance.

The firm expects Q2 earnings per share to meet or exceed the $4.97 consensus estimate, with innovation and fresh product offerings driving growth toward a projected $30 in earnings by 2027 through momentum in digital and merchandising initiatives.

The report also said that Ulta shares are trading at a "discounted valuation" compared to their historical average, suggesting potential for further multiple expansion as investor confidence grows in management's ability to maintain steady comparable sales growth.

The investment firm raised the beauty retailer's price target to $600 from $510 and reiterated an outperform rating on its stock.

Shares of Ulta Beauty ( ULTA ) were up 3% in recent Tuesday trading.

Price: 513.60, Change: +14.90, Percent Change: +2.99