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TD upgrades Sally Beauty on ‘modest valuation,’ comp consistency
The Fly

TD upgrades Sally Beauty on ‘modest valuation,’ comp consistency

TD Cowen analyst Oliver Chen upgraded Sally Beauty (SBH) to Buy from Hold with a price target of $16, up from $14. The firm likes Sally Beauty’s combination of a “modest valuation” with comp consistency. The comps are underpinned by the company’s’ hair color and care category leadership and innovation, marketing and store enhancements, and attractive free cash flow to drive further debt reduction and upside from buybacks, the analyst tells investors in a research note. TD is also positive on Sally’s new customer acquisition, pro customer stability and store modernization efforts.

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