UPDATE: Goldman Sachs Downgrades Ulta Salon to Neutral on Investment Cycle

In a report published on Tuesday, Goldman Sachs analyst Matthew Fassler downgraded Ulta Salon (NASDAQ: ULTA) to Neutral and raised the price target from $93.00 to $98.00.

In the report, Piper Jaffray noted, "In framing retail through the prism of e-commerce, we focus on a firm's investment in ecommerce relative to its opportunity and exposure. Beauty has much potential given favorable characteristics for logistics and replenishment, and given its dominance by brands, pricing is essentially transparent. ULTA operates with a comprehensive loyalty program that resonates with a direct business model, but is in the early stages of investing against its own direct fulfillment and omnichannel capabilities. This issue emerged in our April management meetings, but crystallized with our recent review of sector positioning vis à-vis e-commerce."

Ulta Salon closed on Monday at $89.74.