BMO Capital analyst Shannon Coyne raised her price target on Ulta Beauty to $325 after its Q4 earnings beat, better than expected sales growth, and gross margin expansion. The analyst notes that she is more confident about re-acceleration in the company's comps as its growth initiatives - "loyalty, focus on digitally native brands, salon" - take hold. Longer term, Coyne is keeping her Market Perform rating however and anticipates "clouds on the horizon" in the overall Beauty Channel Distribution sector, suggesting that Ulta Beauty will "need to continue to increase investments in digital to drive growth."

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.