
SBH Stock Forecast & Price Target
SBH Analyst Ratings
Bulls say
Sally Beauty Holdings Inc. is positioned for growth, with the beauty sector projected to expand at low-single-digit to mid-single-digit rates, particularly benefiting from increased demand in the prestige category. The company's focus on hair coloring has resulted in higher conversion rates and average transaction values (ATVs) that are 25% above those of non-professional customers, indicating strong customer engagement and sales efficiency. Furthermore, strong free cash flow generation is enhancing the company's balance sheet and providing greater flexibility in capital allocation, which supports future growth initiatives.
Bears say
Sally Beauty Holdings Inc. may face significant risks as weakening sales trends or adverse economic conditions could adversely impact the financial results of its franchisees, particularly those associated with Armstrong McCall. Despite achieving low-to-mid-teens EBIT margins in the past, there are concerns about sustaining these margins given the potential for declining sales and economic pressures. Additionally, while the company's long-term debt has decreased to $882 million with a net leverage ratio of approximately 1.7x, the historical high of 3.1x in 2020 raises red flags about the company's financial stability amidst ongoing market challenges.
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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