Shares of the Bolingbrook, Ill. company were up 2.4% to $342.42 at last check, while Minneapolis-based Target was up slightly to $255.36.
Ulta Beauty and Target are expected to begin rolling out in more than 100 Target stores nationwide and online next month with more than 50 brands, including Ariana Grande, Clinique, Anastasia Beverly Hills and Urban Decay.
Each so-called "shop-in-shop" will be prominently placed near the existing Target beauty section
Shop-in-shop concepts are a way for retailers to offer customers new experiences and a wider selection of brands.
Customers will also be able to shop online through Target's app or website and get free shipping and same-day delivery for Ulta's products.
Ulta and Target announced their partnership in November. The companies said they are planning to open the Ulta locations at a total of 800 Target stores across the country in the coming years.
In May, Ulta Beauty beat analyst revenue and earnings estimates and raised its full-year forecast as economic reopenings and stimulus checks boosted sales in its fiscal first quarter.
Analysts from Barclays, Credit Suisse, Evercore ISI, Jefferies, J.P. Morgan and Oppenheimer raised their price targets on the stock.
Last month, Target said it would raise its dividend to 90 cents a share from 68 cents, payable Sept. 10, to shareholders of record on Aug. 18.
The move reflected "our ongoing commitment to disciplined capital deployment,” Target Chief Financial Officer Michael Fiddelke said in a statement.