12:11 PM EDT, 04/04/2024 (MT Newswires) -- Ulta Beauty ( ULTA ) warrants a "more conservative stance" for the rest of the year due to category uncertainty and more competitive pressure, Oppenheimer said Thursday in a note to clients.

The investment firm removed the company as a top pick citing "near-term category uncertainty and an increasingly competitive beauty backdrop."

Ulta Chief Executive David Kimbell said Wednesday that the company is seeing a slowdown across categories and price cuts. "What we've seen so far is a slowdown in the total category across price points and segments. That's a bit earlier and a bit bigger than we thought," Kimbell said during a conference presentation, according to a transcript.

Oppenheimer is now estimating Ulta's 2024 diluted EPS at $26.05, down from its previous estimate of $26.45.

The investment firm said its coupon tracker shows Ulta has been a bit aggressive in terms of promoting its products lately which could lead to a more aggressive promotional environment.

Oppenheimer cut Ulta's price target to $500 from $600, with a outperform rating.

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