Oppenheimer analyst Rupesh Parikh raised his price target for Estee Lauder (EL) to $97 from $92 to reflect his increasing confidence in its ability to deliver mid-single-digit-type organic sales growth, given recent distribution additions in the U.S. and continued solid performance in international markets. The analyst notes that Estee Lauder has taken steps to more aggressively partner with Ulta Beauty (ULTA) in recent weeks by bringing its MAC brand of products to the latter and by ramping up the Estee Lauder brand rollout. Parikh reiterates an Outperform rating on Estee Lauder's shares.

Wells Fargo lowered the firm's price target on Ulta Beauty to $350 from $450 and keeps an Underweight rating on the shares. The category is slowing faster than anticipated as the competitive backdrop has become more challenging, the firm says. Margins will likely continue to erode as the need to invest accelerates, Wells adds.