BofA Just Deemed Ulta Beauty a High-Quality Compounder. Time to Buy the 26% Pullback?

An analyst firm just put its stamp of approval on a battered consumer name. Bank of America (NYSE:BAC | BAC Price Prediction) analyst Lorraine Hutchinson upgraded Ulta Beauty (NASDAQ:ULTA) stock to Buy from Neutral with a $685 price target on May 5, arguing that conservative fiscal 2026 guidance has reset expectations and created a more attractive entry into a high-quality compounder.