Morgan Stanley Issues Positive Forecast for Sally Beauty (NYSE:SBH) Stock Price

Key Points

• Morgan Stanley raised its Sally Beauty price target to $19 from $13 but maintained an Underweight rating; its new target implies about 1.7% downside from the prior close.
• Sally Beauty’s latest quarter beat estimates, reporting EPS of $0.62 versus $0.60 expected and revenue of $952.5 million, up 0.6% year over year. Its Q1 2027 EPS guidance midpoint is below consensus.
• Analyst views are mixed: MarketBeat reports a consensus rating of Moderate Buy and an average price target of $19.40.

Sally Beauty (NYSE:SBH - Get Free Report) had its price target increased by stock analysts at Morgan Stanley from $13.00 to $19.00 in a research note issued on Wednesday, Benzinga reports. The brokerage presently has an "underweight" rating on the specialty retailer's stock. Morgan Stanley's price objective suggests a potential downside of 1.68% from the company's previous close.

Several other equities research analysts have also recently weighed in on the stock. Wall Street Zen cut shares of Sally Beauty from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Weiss Ratings lowered shares of Sally Beauty from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, October 30th. Jefferies Financial Group set a $21.00 price objective on shares of Sally Beauty and gave the stock a "hold" rating in a research note on Wednesday. TD Cowen assumed coverage on Sally Beauty in a report on Friday, October 30th. They set a "strong-buy" rating for the company. Finally, Raymond James Financial set a $18.00 target price on Sally Beauty and gave the stock an "outperform" rating in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Sally Beauty presently has an average rating of "Moderate Buy" and a consensus target price of $19.40.

Sally Beauty Stock Down 5.9%

Sally Beauty stock traded down $1.22 during midday trading on Wednesday, hitting $19.32. 681,317 shares of the company's stock were exchanged, compared to its average volume of 1,503,387. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.57 and a current ratio of 2.37. Sally Beauty has a 12 month low of $11.54 and a 12 month high of $21.06. The firm has a 50-day moving average of $16.88 and a two-hundred day moving average of $15.18. The company has a market cap of $1.81 billion, a PE ratio of 10.06 and a beta of 1.09.

Sally Beauty (NYSE:SBH - Get Free Report) last posted its earnings results on Tuesday, November 10th. The specialty retailer reported $0.62 EPS for the quarter, beating analysts' consensus estimates of $0.60 by $0.02. Sally Beauty had a net margin of 5.16% and a return on equity of 24.36%. The business had revenue of $952.53 million for the quarter, compared to the consensus estimate of $950.12 million. During the same quarter last year, the firm posted $0.55 EPS. The company's revenue for the quarter was up .6% on a year-over-year basis. Sally Beauty has set its Q1 2027 guidance at 0.480-0.520 EPS and its FY 2027 guidance at 2.200-2.300 EPS. As a group, analysts expect that Sally Beauty will post 2.07 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Sally Beauty during the second quarter valued at approximately $223,172,000. Bank of New York Mellon Corp purchased a new position in Sally Beauty in the second quarter worth $9,347,000. Pacer Advisors Inc. acquired a new position in shares of Sally Beauty during the first quarter worth $8,102,000. Empowered Funds LLC acquired a new position in shares of Sally Beauty during the second quarter worth $7,264,000. Finally, Great Lakes Advisors LLC acquired a new position in shares of Sally Beauty during the second quarter worth $4,687,000.

Latest Sally Beauty News

These are some of the SBH news items that stood out recently:

• Positive Sentiment: Fiscal Q4 adjusted earnings were $0.62 per share, above the $0.60 consensus and up from $0.55 a year earlier. Revenue rose 0.6% to $952.5 million, also slightly topping estimates. Sally Beauty Reports Q4 Earnings Above Estimates and Raises FY2027 Outlook Above Consensus
• Neutral Sentiment: Fiscal Q1 2027 EPS guidance of $0.48–$0.52 has a midpoint below the $0.52 consensus, while revenue guidance of $945 million–$955 million brackets the $948.3 million estimate. Sally Beauty Holdings Sees Slight Growth In FY27
• Negative Sentiment: Morgan Stanley raised its price target to $19 from $13 but kept its Underweight rating, signaling continued skepticism about the shares despite the higher target. Morgan Stanley Adjusts Price Target on Sally Beauty

About Sally Beauty

Sally Beauty Holdings, Inc. is a specialty retailer and distributor of professional beauty products. It serves both individual consumers and salon professionals through retail stores, online channels and professional distribution. The company operates Sally Beauty, which sells products such as hair color and care items, styling tools, nail products and skincare. Its CosmoProf business supplies salons and other beauty professionals with products, equipment and related educational resources. Sally Beauty traces its roots to a beauty supply store opened in New Orleans in 1964.

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