
SBH Stock Forecast & Price Target
SBH Analyst Ratings
Bulls say
Sally Beauty Holdings, Inc. demonstrates a positive financial outlook driven by its ability to enhance customer conversion rates and average transaction values (ATVs) by 25% among licensed beauty professionals, particularly in hair coloring products. The overall beauty category is expected to experience growth at low to mid-single-digit rates, with a more significant increase anticipated in the prestige segment, positioning Sally Beauty favorably within a growing market. Furthermore, the company's balance sheet is improving, bolstered by strong free cash flow generation, which enhances its flexibility for capital allocation and supports sustainable growth initiatives.
Bears say
Sally Beauty Holdings Inc faces challenges due to the potential deterioration of sales trends among its franchisees, which may negatively impact their financial performance. Historical EBIT margins have hovered in the low-to-mid-teens from FY13 to FY19, indicating persistent challenges in profitability despite relatively stable gross margins. Furthermore, while the company's long-term debt has decreased to $882 million and net leverage improved to approximately 1.7x, the ongoing concern of economic conditions could hinder future financial stability and performance.
This aggregate rating is based on analysts' research of Sally Beauty Hlds and is not a guaranteed prediction by Public.com or investment advice.
SBH Analyst Forecast & Price Prediction
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