Ulta Beauty price target lowered to $498 from $505 at Piper Sandler

Piper Sandler lowered the firm’s price target on Ulta Beauty to $498 from $505 and keeps an Overweight rating on the shares following the Q1 report. A moderating beauty market and competition are causing a weaker outlook for fiscal 2024, the analyst tells investors in a research note. However, the firm says there are still several drivers to help partially offset and support a low single digit sales growth rate for Ulta, such as flexibility built into the budget for promotions and marketing as well as newness and a strong and growing loyalty base. With the recent share pullback and now an estimate reset, Piper feels :increasingly comfortable buying at these levels.”