Ulta Beauty Gains from Rationalized Competitive Environment, Says UBS

Ulta Beauty's solid Q3 results and consistent beauty category demand have been reaffirmed by UBS, which maintains a Buy rating and $680 price target. The firm believes Ulta is well-positioned to generate a healthy beat in Q3 and benefit from an increasingly rational competitive environment, especially in terms of rival store expansions. Ulta's regional expansion, including its first Middle Eastern branch in Kuwait, also contributes to its growth prospects.