Ulta Beauty losing share in on-trend cosmetics brands to Sephora, Jefferies says
** Jefferies downgrades cosmetics retailer Ulta Beauty ULTA.O to "hold" from "buy"
** Brokerage notes consumers are shifting purchases to stores of LVMH-owned Sephora LVMH.PA for on-trend cosmetics brands
** Ulta's "prestige makeup" category weighed down by brands such as Clinique, Estee Lauder, even MAC, which have lost share for years, and many are now selling direct at off-pricers such as TJX Cos TJX.N at one-third price - brokerage
** Ulta has lost share in key, high-margin categories of "prestige cosmetics" and hair - Jefferies
** Sephora has been "relentlessly adding zeitgeist emerging brands some of which are exclusives" driving its sales - brokerage
** Jefferies also cuts PT on Ulta's shares to $438 from $585
** Company's shares down 1.5% to $418.96 premarket
** 17 of 30 brokerages rate the stock "buy" or higher, 12 "hold" and 1 "sell"; median PT $575 - LSEG
** So far this year, stock down ~13%
Reporting by Savyata Mishra in Bengaluru
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