Ulta Beauty downgraded at TD Cowen on lack of upside to Street estimates

As previously reported, TD Cowen analyst Oliver Chen downgraded Ulta Beauty (ULTA) to Hold from Buy with an unchanged price target of $395. The firm sees a lack of upside to Street estimates as comps likely remain negative in the near-term and the industry undergoes further normalization, the analyst tells investors. The firm, which sees a lack of catalysts heading into the investor day in October and thinks the stock’s valuation “appears full,” believes that promotional intensity, increased distribution points at Sephora and Amazon (AMZN), and category normalization are likely to persist for the next year, the analyst added.