We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ulta Beauty (ULTA) Stock Slides on Several Downgrades
Read MoreHide Full Article
Shares of Ulta Beauty (ULTA - Free Report) fell 3.5% in midday trading on Monday after the company’s stock received a lower price target and was downgraded by several analysts.
Stifel Nicolaus lowered its price target on Ulta stock to $270, down from $325. Analysts cited concerns that the U.S. beauty industry is showing slower growth, while Amazon.com (AMZN - Free Report) is expanding into prestige brands and heightening competition.
“Numerous data points suggest U.S. beauty category growth slowed in 2Q17, including from retailers Macy’s (M - Free Report) and Sephora, beauty companies L’Oreal and e.l.f. Beauty (ELF - Free Report) and scanner data measuring sales trends in food, drug, and mass channels” said analysts led by Mark Astrachan.
Slowing makeup and mass-priced product sales could cause a huge problem for Ulta, as each category accounts for about 50% and 40% of the company’s total sales.
However, Stifel remains positive on the stock. “We remain favorable on Ulta’s longer-term growth trajectory anticipating continued share gains of beauty retail sales, benefiting from the accelerating shift from traditional sales channels to specialty retailers, online, and mobile, and attributable to Ulta’s increasing focus on its loyalty program, targeted promotions, and new credit card program,” said the firm.
“That said, we believe near-term trading could result in more downside than upside given broader multiple contraction in retail due to slowing category growth and fears of increased competition from Amazon.”
OTR Global also downgraded Ulta from a positive rating to a mixed rating after interviewing suppliers about the impact of Amazon.
ULTA is set to report its second quarter fiscal 2017 results this Thursday after market close. The Zacks Consensus Estimate predicts that the company will report earnings of $1.78 per share and revenue of $1.29 billion.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Ulta Beauty (ULTA) Stock Slides on Several Downgrades
Shares of Ulta Beauty (ULTA - Free Report) fell 3.5% in midday trading on Monday after the company’s stock received a lower price target and was downgraded by several analysts.
Stifel Nicolaus lowered its price target on Ulta stock to $270, down from $325. Analysts cited concerns that the U.S. beauty industry is showing slower growth, while Amazon.com (AMZN - Free Report) is expanding into prestige brands and heightening competition.
“Numerous data points suggest U.S. beauty category growth slowed in 2Q17, including from retailers Macy’s (M - Free Report) and Sephora, beauty companies L’Oreal and e.l.f. Beauty (ELF - Free Report) and scanner data measuring sales trends in food, drug, and mass channels” said analysts led by Mark Astrachan.
Slowing makeup and mass-priced product sales could cause a huge problem for Ulta, as each category accounts for about 50% and 40% of the company’s total sales.
However, Stifel remains positive on the stock. “We remain favorable on Ulta’s longer-term growth trajectory anticipating continued share gains of beauty retail sales, benefiting from the accelerating shift from traditional sales channels to specialty retailers, online, and mobile, and attributable to Ulta’s increasing focus on its loyalty program, targeted promotions, and new credit card program,” said the firm.
“That said, we believe near-term trading could result in more downside than upside given broader multiple contraction in retail due to slowing category growth and fears of increased competition from Amazon.”
OTR Global also downgraded Ulta from a positive rating to a mixed rating after interviewing suppliers about the impact of Amazon.
ULTA is set to report its second quarter fiscal 2017 results this Thursday after market close. The Zacks Consensus Estimate predicts that the company will report earnings of $1.78 per share and revenue of $1.29 billion.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>