Ulta Beauty Inc (NASDAQ:ULTA) shares fell Monday as the beauty services provider’s price target was reduced.
Analysts responded to the company’s struggles by slashing its price target considerably, with Stifel Financial Corp (NYSE:SF) cutting it from $325 to $270 over the company’s projected short-term struggles.
However, the firm maintained that it is still high on Ulta Beauty in the long run, noting that shares will continue surging for the company as beauty retail sales will rise. This improvement will be caused by the ongoing shift of traditional sales channels to specialty retailers.
Stifel added in its note that it sees Ulta Beauty performing well in various segments, including “online, and mobile, and attributable to Ulta’s increasing focus on its loyalty program, targeted promotions, and new credit card program.”
Wall Street has also noted that it has been a difficult climate for U.S. beauty companies in the U.S. in 2017. Ulta Beauty’s recent hardships include lower makeup and mass-priced product sales.
OTR Global also adjusted its rating on the company, downgrading it from a “positive” rating to a “mixed” rating due in large part to the firm’s interviews with suppliers, who believe Amazon.com, Inc.’s (NASDAQ:AMZN) expansion in the beauty products category will have a negative effect on Ulta Beauty.
ULTA stock fell 4.1% over the course of the day to a 2017 low of $234.21 per share.