UPDATE: Jefferies Downgrades Ulta Salon on Strong Fundamentals, EPS Upside

In a report published Monday, Jefferies analyst Randal J. Konik downgraded the rating on

from Buy to Hold, but reiterated the $120.00 price target. In the report, Jefferies noted, “Exiting a strong 2Q that bucked the overall downtrend in retail, ULTA shares are up nearly 50% since April. We believe fundamental strength and EPS upside will persist, but we now see shares pricing in most of the good news and outlook. While we remain positive on the growth opportunity in this name, we no longer view the risk/reward as favorable. Lower rating to Hold; PT stays at $120.” Ulta Salon, Cosmetics & Fragrance closed on Friday at $118.75.