Piper Sandler downgraded Ulta Beauty to Neutral from Overweight with a price target of $404, down from $494. The firm’s analysis indicates the company looks to be increasingly pulling on traffic drivers .Despite efforts to improve efficiencies in the supply chain, it is not enough to offset the several sources of margin dilution, the analyst tells investors in a research note. Piper believes a “rather lackluster long range plan” come October is probable, which could leave shares range-bound. The analyst says competition and promotions are “heating up” for Ulta as Sephora has added over 1,000 store fronts with Kohl’s and Amazon has built a prominent position in beauty.
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Read More on ULTA:
- Oppenheimer cuts Ulta Beauty target, removes top pick status
- Ulta Beauty management to meet with Telsey Advisory
- Ulta Beauty price target lowered to $494 from $498 at Piper Sandler
- Ulta Beauty price target lowered to $355 from $394 at Barclays
- Oppenheimer adds Ulta Beauty shares back to top pick status