Ulta Beauty initiated with a Sell at B. Riley

B. Riley analyst Anna Glaessgen initiated coverage of Ulta Beauty with a Sell rating and $300 price target. As the largest player in U.S. beauty specialty retail, Ulta has been a key beneficiary of the category’s strong growth over the past 10 years, the analyst tells investors in a research note. The firm says that although the stock is down 20% year-to-date, it still sees earnings risk as outweighing the positive of a low valuation relative to historical ranges, particularly as it contemplates the potential for further category deceleration and intensifying competitive threats.