Ulta Beauty (ULTA) Gains From Rationalized Competitive Environment, Says UBS

Ulta Beauty, Inc. (NASDAQ:ULTA) ranks among the best performing retail stocks in 2025. On November 21, UBS reaffirmed its Buy rating for Ulta Beauty, Inc. (NASDAQ:ULTA) with a $680 price target, citing solid third-quarter results and consistent beauty category demand. The firm believes Ulta Beauty, Inc. (NASDAQ:ULTA) is well-positioned to generate “a healthy beat in 3Q” while gaining from an increasingly rational competitive environment, especially in terms of rival store expansions.

UBS reports that decreased rivalry from Sephora openings could give a 100-200 basis point boost to comparable sales in 2026, while Ulta’s “re-energized leadership team” applies strategic actions that are contributing to share gains.

Moreover, Ulta Beauty, Inc. (NASDAQ:ULTA) announced plans to launch its first Middle Eastern branch in Kuwait on November 7, marking a key milestone in the company’s regional expansion. In collaboration with Alshaya Group, the store will carry over 300 beauty and wellness products, some of which will be making their Middle Eastern debut.

Ulta Beauty, Inc. (NASDAQ:ULTA) is a speciality beauty retailer in the U.S. that operates more than 1,445 retail stores across 50 states. The company provides a variety of skincare, hair care, cosmetics, perfumes, and salon services.

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Disclosure: None. This article is originally published at Insider Monkey.