Piper Jaffray Downgrades ULTA Salon (ULTA) to Neutral
Piper Jaffray analyst Erinn Murphy downgraded ULTA Salon (NASDAQ: ULTA) from Overweight to Neutral with a price target of $250.00 (from $360.00).
The analyst comments "To be clear, Q2 was not our concern but rather what is implied for the company's 2H trends which could bleed into 1H of next year. Specifically, we are less than one year into Ulta's Investor Day targets and comps in year 1 have been revised below that of the LT plan (now 4-6% vs. 5-7%). Further, instead of EPS being closer to 20% in 2H of this year mgmt's new guidance range implies LSD EPS growth. On the call, July & QTD trends have seen increased volatility in color cosmetics. While mgmt continues to focus on bringing several new brands into stores, which has proven successful, historically we prefer to sit on the sidelines during this period of muted visibility."
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Shares of ULTA Salon closed at $337.45 yesterday.