William Blair downgraded Ulta Beauty (ULTA) to Market Perform from Outperform without a price target The firm believes Ulta's comp and operating margin estimates are optimistic and embed expectations of an early 2025 inflection in the beauty category, which is unlikely. The shares at current levels are "relatively fairly valued ahead of several quarters of uncertainty with risk of more sustained category deceleration and longer-term online cannibalization risk," the analyst tells investors in a research note.