The corporate tax cut of from 35 percent to 21 percent could have positive ramifications for US retailers such as Ulta, according to a report by CNBC.

Wells Fargo banking and financial services has upgraded Ulta Beauty’s stock earlier this year, thanks to the company’s earnings per share being expected to rise more than $2 with the new tax plan.

Retail analyst Ike Boruchow said, “This is a name that lagged all of last year, but has some of the best growth prospects in retail. You’ve got a stock that’s trading at recession multiples, tax-adjusted with some of the best fundamentals in retail.”

Indeed, the bank has given the company a 20 percent growth capacity, with a target price of $275 on the retail stock.

Boruchow continued that the new corporate tax was “going to put us in an upward revision cycle for retail, and we haven’t seen that in about two years. That’s why the space has lagged so much.”