Loop Capital analyst Anthony Chukumba keeps his Hold rating and $270 price target on Ulta Beauty after conducting a product pricing study. The analyst notes that discounting at the company and other brick-and-mortar retailers is "virtually non-existent", but he does see a "marked pickup" in Ulta Beauty's "free gift with purchase" offers, which suggests that the demand for its products remains soft. Chukumba adds that the discount 16.8 times forward earnings multiple on the stock relative to its historical average valuation is warranted amid the company's slowing square footage and comp sales 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.