UPDATE: Piper Jaffray Downgrades Ulta Salon, Cosmetics & Fragrance to Neutral, Lowers PT on Muted Outlook

In a report published Friday, Piper Jaffray analyst Neely J.N. Tamminga downgraded the rating on

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.