Canaccord Genuity analyst Susan Anderson maintained a Buy rating on Sally Beauty (SBH – Research Report) yesterday and set a price target of $14.00.
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Susan Anderson’s rating is based on a blend of positive financial results and strategic initiatives undertaken by Sally Beauty Holdings. The company reported growth in same-store sales and maintained a strong adjusted EBIT margin, matching industry expectations. Sally Beauty’s strategic focus on hair color and e-commerce has driven growth in its SBS division, while innovations and enhanced distribution have benefited the BSG segment. Additionally, the company is successfully executing on its cost-saving strategies, such as the Fuel for Growth initiative, which has yielded significant savings and is expected to continue contributing to margin improvements.
Susan Anderson also highlights Sally Beauty’s progress in reducing leverage, now under 2x, which strengthens its financial position. The company is actively testing new store formats and customer-centric initiatives like the Happy Beauty Co, which have shown promising results in engaging customers. The License on Demand initiative further supports growth by attracting new customers and increasing average order values. With these efforts and a reiteration of its FY25 guidance, Sally Beauty is well-positioned for continued success, justifying the Buy rating.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $16.00 price target.
SBH’s price has also changed moderately for the past six months – from $11.210 to $9.590, which is a -14.45% drop .