TD Cowen upgraded Ulta Beauty (NASDAQ: ULTA) to Buy from Hold and lifted its price target to $725 from $600, citing improved operational visibility and a strengthening growth trajectory under CEO Kecia Steelman.

The analyst said Steelman's leadership was already producing measurable gains in store execution, supply-chain reliability and alignment across teams. TD Cowen reaffirmed Ulta's long-term positioning as the leading specialty beauty retailer, benefiting from a structurally attractive category with margins in the low- to mid-teens.

The firm highlighted several strategic advantages, including Ulta's scale, its loyalty ecosystem and the breadth of its assortment of roughly 29,000 SKUs. TD Cowen argued that Ulta could further elevate its brand by sharpening its editorial marketing presence, deepening influencer partnerships, accelerating TikTok engagement, and building stronger community-driven initiatives.

The firm also saw opportunity for Ulta to expand its wellness positioning and better integrate service offerings. Ultimately, TD Cowen said Ulta's global scale should help attract top-tier beauty brands and support sustained expansion. The $725 price target was based on 23x the firm's FY27 EPS estimate.