Ulta Beauty (ULTA) is expected to report Q4 results in line with analysts' estimates, UBS said in a Thursday note.

The investment firm expects Q4 diluted earnings of $7.05 per share compared with the $7.07 consensus of analysts polled by FactSet.

UBS said the beauty salon company's forward outlook is "likely to reflect some additional caution" as it experienced slower sales trends quarter to date. A slowdown in sales "could cause minor pressure on forward estimates though Ulta has recently maintained a posture that '25 will be a "transitional year" and flagged that some growth headwinds will persist in the near-term," UBS analysts said.

The investment firm expects the company to guide flat to 2% comp growth for fiscal 2025 versus the consensus of 1.3% comp growth. Full-year earnings are seen between $22.50 to $23.50 per share, compared with the $23.57 consensus of analysts surveyed by FactSet.

Overall, UBS said it viewed the majority of the company's headwinds as temporary and not structural, and believed concerns over intrusion from Amazon (AMZN) were "overblown."

The firm also said that while investors have priced in "too much pessimism" that Ulta's business will remain significantly pressured for an extended period of time, they said, "we don't think that's the case."

UBS has a buy rating on the stock with a price target of $490.

The company is due to report Q4 results after the close on March 13.

Shares were edging 0.9% higher in recent trading.

Price: 354.78, Change: +3.15, Percent Change: +0.90