Ulta Beauty's (ULTA) upcoming launch of the Rare Beauty brand and incremental top-line benefits from merchandising efforts to digital initiatives raise confidence in the company's fiscal 2026 innovation pipeline, Oppenheimer said in a Tuesday note.

Oppenheimer said it is lifting its estimates on the company to reflect a "likely strong" holiday season, top-line benefits and that its model now incorporates an approximate $0.30 less accretion in fiscal 2027 related to share buybacks following the major re-rating in shares.

The brokerage further said its latest round of checks in Orlando, Florida and Northern new Jersey showed limited post-holiday clearance and continued solid store conditions.

Oppenheimer added that it is closely monitoring promotions that would characterize the Ulta Beauty's working environment as fairly consistent year-on-year, that would abode well for the company's holiday season performance.

The firm rated Ulta Beauty as outperform with a $750 price target.

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