Ulta Beauty price target lowered to $425 from $575 at BofA

BofA analyst Lorraine Hutchinson lowered the firm’s price target on Ulta Beauty to $425 from $575 and keeps a Neutral rating on the shares. Management discussed beauty category weakness at a conference intra-quarter and given the comments about slowing trends the firm expects Ulta to temper its FY24 comp guidance, the analyst tells investors. The firm thinks that investors expect a Q1 comp closer to 0%-1% than the Visible Alpha consensus at 2.6%, but adds that the bigger debates will likely be the comp trajectory after Q1 and the margin implications of slower sales growth.