Ulta Beauty price target lowered to $404 from $467 at BMO Capital

BMO Capital lowered the firm’s price target on Ulta Beauty (ULTA) to $404 from $467 and keeps a Market Perform rating on the shares. The company reported a top- and bottom-line beat, as better comps, gross margins and expenditures drove a healthy EPS beat, but in its outlook, the management introduced below-Street guidance, calling FY25 a transitional year, the analyst tells investors in a research note. Longer term, Ulta Beauty offers a compelling business in an attractive sector, but BMO remains sidelined pending visibility on competition and distribution to determine the sales and margin floor, the firm added.