Ulta Beauty price target lowered to $500 from $600 at Oppenheimer

Oppenheimer analyst Rupesh Parikh lowered the firm’s price target on Ulta Beauty to $500 from $600 and keeps an Outperform rating on the shares. Following the firm’s call with the company and downbeat commentary on the beauty category from Ulta management at a competitor conference on Wednesday, Oppenheimer spent time revisiting its model and upside case. At this point, the firm is unclear whether the deeper moderation lately is a blip or something more. As a result, it is taking a more conservative stance for the balance of the year on the category and competitive backdrop. For FY24, Oppenheimer is now moving to $26.05 vs. its prior estimate of $26.45 and guidance of $26.20-$27.00. The firm is also removing Ulta as a top pick amidst near-term category uncertainty and an increasingly competitive beauty backdrop.