Ulta Beauty and Target Corp. announced on Thursday that they won’t be renewing their in-store partnership, which ends a year from now in August 2026. Until then, Ulta Beauty products will continue to be sold in Target stores and online at Target.com.

Ulta Beauty's growth remains promising, but valuation concerns and profit challenges lead to a downgrade to 'hold'. Read factors that limit ULTA's near-term upside.