Oppenheimer analyst Rupesh Parikh raised his price target for Ulta Beauty to $310 from $275 saying the management team continues to execute "quite well" in a challenging environment, giving him continued confidence in the longer-term profit potential of the model. The analyst notes that several media outlets have reported on Macy's (M) plans to close nearly 30 stores. After completing an analysis comparing the Macy's store closures to Ulta locations, Parikh expects share gains from the department store channel to persist as he continues to watch J.C. Penney (JCP) and any changes to its store footprint that include more than 650 Sephora stores. Given ongoing makeup category challenges, he still expects a volatile ride from here for Ulta shares. The analyst has an Outperform rating on Ulta's stock.

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.