Ulta Beauty price target lowered to $505 from $595 at Piper Sandler

Piper Sandler analyst Korinne Wolfmeyer lowered the firm’s price target on Ulta Beauty to $505 from $595 and keeps an Overweight rating on the shares ahead of the fiscal Q1 report. The analyst remains cautious on Ulta’s near term results given intensified competitive pressures and broader category normalization. However, from a stock perspective, Piper still views the name “as an attractive buy.” The company’s share loss will be limited and with margins that are structurally stronger than several years ago, its earnings growth over the coming years warrants a higher multiple than what’s currently being awarded, says Piper.