Ulta Beauty 15% selloff reflects short-run uncertainty, says UBS

In a research note titled “A Little Blemish,” UBS points highlights Ulta Beauty’s comments at a conference today that its own sales trends and the broader category have slowed at a faster rate than originally anticipated to start the year. Notably, the company pointed to a moderation across all price points including both mass and prestige, the analyst tells investors in a research note. The firm believes the 15% downside move for the stock now reflects short-run uncertainty. At this level, Ulta’s risk/reward “looks better to the upside, especially with the market’s expectations now moving lower,” contends UBS. It keeps a Buy rating on the shares with a $690 price target.