Market Overview

UPDATE: Piper Jaffray Downgrades Ulta Salon, Cosmetics & Fragrance on Muted Outlook

Share:
Related ULTA
Top 10 S&P Stocks Of The Obama Presidency
Flashback To 2009 When The Dow Was Sitting At 10,000

In a report published Friday, Piper Jaffray analyst Neely J.N. Tamminga downgraded the rating on Ulta Salon, Cosmetics & Fragrance (NASDAQ: ULTA) from Overweight to Neutral, and lowered the price target from $129.00 to $113.00.

In the report, Piper Jaffray noted, “We are downgrading our rating to Neutral and lowering our PT to $113 (from $129) on ULTA shares following the company's FQ3 release of EPS of $0.72 (ex-items), below our estimate of $0.73. Management discussed cautious guidance for FQ4 and FY15 (2014) in view of softened business in late September and October as well as the intense promotional environment right now. There are three main considerations in our rating change: 1) management has suspended their prior target of mid-teens% EBIT margins; 2) management has offered a more cautious square footage growth assumption of 15% vs. the prior range of 15%-20%; 3) management has adopted a more muted outlook for EPS growth next year and expects to see low-20s% growth compared to 25% previously.”

Ulta Salon, Cosmetics & Fragrance closed on Thursday at $118.00.

Latest Ratings for ULTA

DateFirmActionFromTo
Dec 2016BMO CapitalInitiates Coverage OnOutperform
Aug 2016Deutsche BankMaintainsHold
Aug 2016JefferiesMaintainsHold

View More Analyst Ratings for ULTA
View the Latest Analyst Ratings

Posted-In: Neely J.N. Tamminga Piper JaffrayAnalyst Color Downgrades Analyst Ratings

 

Related Articles (ULTA)

View Comments and Join the Discussion!