The strong quarterly report marks the beginning of a strong recovery for Ulta Beaty, according to investment firm Jefferies. On Thursday, Ulta blew first-quarter estimates, posting $6.30 in adjusted earnings per share on $2.35 billion in revenue. Analysts polled by Refinitiv had expected $4.46 in earnings per share on $2.12 billion in revenue. The company’s guidance also exceeded expectations. Analyst Stephanie Wiesink upgraded cosmetics stocks to buy from hold, saying the strong first-quarter report was a signal to investors that the recovery is in full swing. Ulta was the unexpected winner in the rebalancing, sounding like the ‘clear’ makeup we need to hear: With now, 45% of Ulta’s work is makeup related (versus 50%+ pre-pandemic), we’ve been waiting for all Something clear “indicates that demand has returned to pre-pandemic levels with improved and sustained momentum.” Retail companies as a whole had a mixed earnings season, but makeup appears to be one of the strongest areas in the sector after the Ulta report. “The importance of makeup cannot be underestimated as it represents the highest speed class in beauty and this reflection gives us even greater confidence in continued engagement and momentum in 2H,” Wissink wrote. Jefferies raised its target price on Ulta to $475 per share from $400. The new target is more than 25% above where the stock closed Thursday. Ulta shares are down about 8% since the start of the earnings report. CNBC’s Michael Bloom contributed to this report.