Ulta Beauty (NASDAQ:ULTA) Stock Update: Morgan Stanley Maintains "Overweight" Rating

Font: Financial Modeling Prep  • Dec 08, 2025

• Morgan Stanley has updated its rating for Ulta Beauty (NASDAQ:ULTA) to "Overweight" with a raised price target from $600 to $640.
• Ulta's fiscal third-quarter net sales rose by 12.9% to $2.9 billion, surpassing estimates and driving a stock increase of 12.65% this holiday season.
• The company has raised its fiscal 2025 outlook, projecting net sales of approximately $12.3 billion, with a current market capitalization of approximately $26.97 billion.

Ulta Beauty (NASDAQ:ULTA) is a leading beauty retailer in the United States, offering a wide range of cosmetics, skincare, and haircare products. The company operates over 1,500 stores and has a strong online presence. Ulta competes with other beauty retailers like Sephora and E.L.F. Beauty. Recently, Morgan Stanley updated its rating for Ulta to "Overweight," maintaining its previous grade, with a stock price of $601.50 and a raised price target from $600 to $640.

Ulta's stock has seen a notable increase of 12.65% this holiday season, driven by strong financial performance. The company reported a 12.9% rise in net sales for its fiscal third quarter, reaching $2.9 billion, surpassing the estimated $2.7 billion. This growth is attributed to new store openings, increased sales at existing locations, and the acquisition of Space NK Limited. Ulta's comparable sales increased by 6.3%, contributing to the overall revenue growth.

Despite challenges like competition from lower-priced alternatives and market saturation, Ulta has managed to outperform expectations. The company's earnings per share remained flat at $5.14, exceeding expectations of $4.60. This flat growth is due to increased investment in the business. Ulta's management is confident in their holiday strategy, which includes exciting product assortments and enhanced in-store and digital experiences.

Ulta's stock surged by over 12% following the announcement of an improved sales and profit forecast. The company's fiscal third-quarter results exceeded Wall Street expectations, with earnings per share of $5.14, surpassing analyst predictions of $4.55. Ulta also raised its fiscal 2025 outlook, projecting net sales of approximately $12.3 billion, an increase from previous estimates.

The company's market capitalization stands at approximately $26.97 billion, with a trading volume of 3,395,556 shares. Ulta's stock has fluctuated between a low of $575 and a high of $611.90 today. Over the past year, the stock has reached a high of $611.90 and a low of $309.01. Despite a decrease in operating income, Ulta's gross profit increased by 14.9%, amounting to $1.16 billion, or 40.4% of sales.