Credit Suisse analyst Michael Binetti lowered his price target on Ulta Beauty to $235 from $245 following the company's Q4 results. While same-store sales was essentially in-line with the "recently lowered bar," Binetti said he was "surprised" at the size of its reinvestment plans for 2018, which imply an about $850M EBIT midpoint, but believes Ulta has an opportunity to redeploy tax savings beyond proven initiatives, which should help to speed up comps as they ease through the year. The analyst, who has an Outperform rating on Ulta shares, says the stock remains one of the cheapest growth-adjusted stocks in his group.

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.