TD Cowen Cuts Sally Beauty (NYSE:SBH) Price Target to $17.00

Key Points

• TD Cowen cut its price target on Sally Beauty to $17 from $20, while keeping a buy rating. The new target still implies about 37% upside from the prior close.
• The broader analyst picture is mixed: three Buy, three Hold, and one Sell, with the consensus rating at Hold and an average price target of $17. Recent moves included Morgan Stanley lowering its target to $13 and Raymond James upgrading the stock to outperform.
• Shares fell 4.6% to $12.38 even after Sally Beauty reported quarterly earnings of $0.44 per share, beating estimates, on revenue of $903.4 million. Management also issued a more cautious outlook, which appears to have weighed on sentiment.

Sally Beauty (NYSE:SBH - Get Free Report) had its price target decreased by investment analysts at TD Cowen from $20.00 to $17.00 in a research report issued on Tuesday,Benzinga reports. The firm currently has a "buy" rating on the specialty retailer's stock. TD Cowen's price objective would suggest a potential upside of 37.32% from the stock's previous close.

A number of other equities analysts have also recently weighed in on SBH. Morgan Stanley lowered their price objective on shares of Sally Beauty from $16.00 to $13.00 and set an "underweight" rating for the company in a research report on Tuesday. Canaccord Genuity Group increased their price objective on shares of Sally Beauty from $19.00 to $20.00 and gave the stock a "buy" rating in a research report on Tuesday, February 10th. Jefferies Financial Group reaffirmed a "hold" rating and set a $16.00 price objective on shares of Sally Beauty in a research report on Wednesday, January 14th. Wall Street Zen raised shares of Sally Beauty from a "hold" rating to a "buy" rating in a research report on Tuesday, March 10th. Finally, Raymond James Financial raised shares of Sally Beauty from a "market perform" rating to an "outperform" rating and set a $19.00 price objective for the company in a research report on Wednesday, January 21st. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $17.00.

Sally Beauty Trading Down 4.6%

Shares of Sally Beauty stock traded down $0.60 during mid-day trading on Tuesday, hitting $12.38. The stock had a trading volume of 640,635 shares, compared to its average volume of 1,596,029. The firm has a 50-day moving average of $14.25 and a two-hundred day moving average of $14.95. Sally Beauty has a 12-month low of $8.45 and a 12-month high of $17.92. The company has a quick ratio of 0.57, a current ratio of 2.37 and a debt-to-equity ratio of 1.02. The firm has a market cap of $1.20 billion, a P/E ratio of 7.01 and a beta of 1.07.

Sally Beauty (NYSE:SBH - Get Free Report) last posted its quarterly earnings results on Monday, May 11th. The specialty retailer reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.03. Sally Beauty had a net margin of 4.87% and a return on equity of 26.07%. The business had revenue of $903.38 million during the quarter, compared to analysts' expectations of $900.78 million. During the same quarter in the prior year, the company posted $0.42 EPS. The business's revenue for the quarter was up 2.3% on a year-over-year basis. Sally Beauty has set its Q3 2026 guidance at 0.520-0.560 EPS. Sell-side analysts forecast that Sally Beauty will post 2.07 earnings per share for the current year.

Institutional Investors Weigh In On Sally Beauty

Institutional investors and hedge funds have recently bought and sold shares of the stock. Bryce Point Capital LLC purchased a new stake in Sally Beauty in the third quarter valued at $570,000. SG Americas Securities LLC lifted its position in Sally Beauty by 864.1% in the fourth quarter. SG Americas Securities LLC now owns 83,189 shares of the specialty retailer's stock valued at $1,186,000 after acquiring an additional 74,560 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH lifted its position in Sally Beauty by 45.4% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 404,212 shares of the specialty retailer's stock valued at $5,771,000 after acquiring an additional 126,286 shares during the last quarter. American Century Companies Inc. lifted its position in Sally Beauty by 174.4% in the third quarter. American Century Companies Inc. now owns 1,660,831 shares of the specialty retailer's stock valued at $27,038,000 after acquiring an additional 1,055,669 shares during the last quarter. Finally, Teacher Retirement System of Texas lifted its position in Sally Beauty by 58.7% in the third quarter. Teacher Retirement System of Texas now owns 578,570 shares of the specialty retailer's stock valued at $9,419,000 after acquiring an additional 214,066 shares during the last quarter.

Key Stories Impacting Sally Beauty

Here are the key news stories impacting Sally Beauty this week:

• Positive Sentiment: Sally Beauty reported second-quarter EPS of $0.44, ahead of the $0.41 consensus, while revenue of $903.4 million also slightly topped estimates. Sally Beauty Holdings Reports Second Quarter Fiscal 2026 Results
• Positive Sentiment: The company said operating cash flow rose sharply year over year, and gross profit, operating profit, and net income all improved, suggesting solid execution despite a tougher consumer environment. Sally Beauty Holdings Reports Second Quarter Fiscal 2026 Results
• Positive Sentiment: Several articles noted the stock initially gained after the earnings beat and stronger-than-expected results, with some analysts describing the shares as back in a “buy zone.” Sally Beauty shares edge higher after earnings beat and updated outlook
• Neutral Sentiment: The company tightened its full-year outlook and guided third-quarter EPS and revenue below consensus, which helps explain why the market reaction turned negative despite the beat. Sally Beauty Holdings Reports Second Quarter Fiscal 2026 Results
• Negative Sentiment: Management also pointed to more “frugality” in the marketplace, signaling cautious consumer spending that could pressure sales trends and margins ahead. Sally Beauty turns lower after warning on more frugality in the marketplace

About Sally Beauty

Sally Beauty Holdings, Inc is a leading global specialty retailer and distributor of professional beauty supplies, serving both retail customers and salon professionals. The company operates two primary channels: Sally Beauty Supply, which offers a broad assortment of hair color, hair care, styling, and skincare products; and Beauty Systems Group (BSG), which provides salon-quality products and supplies to professional stylists and salon owners. With a focus on catering to diverse customer needs, Sally Beauty offers well-known brands alongside private label lines, positioning itself as a one-stop source for beauty professionals and enthusiasts alike.

Founded in 1964 and headquartered in Denton, Texas, Sally Beauty has grown through a combination of organic expansion and strategic acquisitions.

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