10:39 AM EST, 12/06/2024 (MT Newswires) -- Ulta Beauty's ( ULTA ) better-than-expected sales and gross margin fueled a major earnings upside for fiscal Q3, with earnings per share of $5.14 beating the $4.53 consensus, Oppenheimer said.

The firm also said in a Thursday note that management boosting guidance for fiscal 2024 is a "clear positive surprise."

For fiscal 2024, Ulta has raised its EPS outlook to between $23.20 and $23.75, up from the previous range of between $22.60 and $23.50.

Oppenheimer said the company's latest results together with "recent challenges" at Kohl's (KSS) "should help to put to rest some bearish concerns" on Ulta Beauty ( ULTA ).

The firm said that for 2025, Ulta Beauty ( ULTA ) and Target (TGT) continue to be its favorite rotation plays.

The brokerage remains positive on Ulta Beauty's ( ULTA ) long-term prospects, citing its unique value proposition, strong merchandising, beauty category appeal, growth potential, market share opportunities, and capable management.

Oppenheimer boosted its price target on Ulta Beauty ( ULTA ) to $505 from $435 and maintained its outperform rating.

Shares of Ulta Beauty ( ULTA ) advanced 10% in recent trading.

Price: 432.19, Change: +39.32, Percent Change: +10.01