UPDATE: Goldman Sachs Lowers PT on Ulta Salon on Subdued Outlook

In a report published Friday, Goldman Sachs analyst Matthew J. Fassler reiterated his Buy rating on Ulta Salon, Cosmetics & Fragrance (NASDAQ: ULTA), but lowered his price target from $117.00 to $93.00.

In the report, Fassler noted, “ULTA is the latest mid-cap hardlines growth retailer to offer a subdued outlook based on a combination of investment spending (e-commerce and real estate are the common threads) and a choppy backdrop. In ULTA's case, two factors aggravate the situation: (1) back-end loaded margin guidance, and (2) management turnover, such that the incoming CEO – to be determined – does not own the firm's financial plan. We are retaining our Buy rating for ULTA nonetheless, as the top-line performance through 4Q has been powerful, the concept remains resilient, and the growth opportunity is expansive.”

Ulta Salon, Cosmetics & Fragrance closed on Thursday at $88.37.

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