
SBH Stock Forecast & Price Target
SBH Analyst Ratings
Bulls say
Sally Beauty Holdings Inc. is experiencing increased conversion rates and average transaction values (ATVs) among professional customers engaged in hair coloring, with these values reported to be 25% higher than those of non-LCOD customers. The overall beauty market is projected to grow at low single-digit to mid-single-digit rates, with particular strength expected in the prestige segment. Additionally, the company's improving balance sheet, bolstered by strong free cash flow generation, enhances its capital allocation flexibility, supporting a positive outlook for future financial stability and growth.
Bears say
Sally Beauty Holdings faces a concerning outlook due to potential economic downturns that could negatively impact the financial results of its franchisees, particularly Armstrong McCall. Additionally, although the company has exhibited low-to-mid-teens EBIT margins historically, these margins may remain vulnerable amid changing sales trends and competitive pressures within the beauty products retail sector. Moreover, while the reduction in net leverage to approximately 1.7x indicates some financial improvement, the significant long-term debt of $882M and low-to-mid-teens free cash flow yield raise further concerns about the company’s financial stability and ability to navigate challenging market conditions.
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
Start investing in SBH
Order type
Buy in
Order amount
Est. shares
0 shares