William Blair analyst Daniel Hofkin said he would recommend buying Ulta Beauty (ULTA) shares on any pullback related to yesterday's announcement from Amazon (AMZN) of the launch of the "Amazon Professional Beauty Store."
Amazon's new online store specifically targets professional stylists, while Ulta targets the end-user beauty enthusiast and does not offer any specific incentives for professional stylists, Hofkin tells investors.
Additionally, one of the largest categories of products that professionals buy is color, which Ulta does not sell for professionals, noted the analyst, who keeps an Outperform rating on Ulta shares.
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