UPDATE: Goldman Sachs Reiterates Buy Rating, Lowers PT on Ulta Salon, Cosmetics & Fragrance on Subdued Outlook

In a report published Friday, Goldman Sachs analyst Matthew J. Fassler reiterated his Buy rating on Ulta Salon, Cosmetics & Fragrance

, 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. The need for incremental spending suggests the firm under-invested in recent years, helping to fuel its powerful margin expansion; we expect smaller beats, and hence more moderate valuation. But we still see a growth profile of 20% or better, with high-visibility, and reiterate our Buy rating.” Ulta Salon, Cosmetics & Fragrance closed on Thursday at $88.37.