Ulta Beauty downgraded to Underweight from Equal Weight at Wells Fargo

Wells Fargo analyst Ike Boruchow downgraded Ulta Beauty to Underweight from Equal Weight with a price target of $400, down from $450. The space is coming off its worst year since the global financial crisis as demand broke down, inventory ballooned, and costs spiked, and Boruchow sees a very challenging catalyst path heading into 2023, the analyst tells investors in a research note. Additionally, holiday results were likely "OK" at best, and with a difficult Q1 setup looming, Street numbers that will likely be coming down on weaker initial guidance, the analyst contends.