Analysts raised Sally Beauty Holdings’ price target to $13.45, citing stronger hair color trends, better-than-expected Q3 results, and growth initiatives like store renovations and new brand rollouts.
Analyst Commentary
- Stronger hair color trends are providing a partial offset to weakness from more frugal, middle-income hair care shoppers.
- Q3 results, while down year-over-year, exceeded consensus expectations.
- Guidance was lowered but still came in above analyst expectations.
- Initiatives such as new store renovations, adding more brands, and expanding distribution are expected to create further growth opportunities.
- The rollout of the new Happy Beauty Co format is seen as a potential catalyst for increased regional expansion and sales momentum.
What's in the News
- Repurchased 1,455,864 shares for $13.02 million, completing a total buyback of 35,034,864 shares (30.61%) for $512.21 million under the existing program.
- Updated 2025 guidance: Comparable sales expected to be approximately flat; consolidated net sales projected to be about 75 basis points lower than comparable sales, impacted by foreign exchange and the operation of roughly 30 fewer stores.
- Amended and Restated By-Laws adopted, enhancing requirements and disclosure for stockholder nominations and proposals, clarifying powers for meeting conduct and adjournment, and specifying procedural details for notifications related to stockholder meetings.
Valuation Changes
Summary of Valuation Changes for Sally Beauty Holdings
- The Consensus Analyst Price Target has risen from $12.70 to $13.45.
- The Future P/E for Sally Beauty Holdings has risen from 7.43x to 7.84x.
- The Discount Rate for Sally Beauty Holdings remained effectively unchanged, moving only marginally from 11.18% to 11.06%.
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