
SBH Stock Forecast & Price Target
SBH Analyst Ratings
Bulls say
Sally Beauty Holdings is capitalizing on the growth of the beauty category, which is projected to expand at low single-digit to mid-single-digit rates, particularly benefiting from a surge in the prestige segment. The company has demonstrated an impressive conversion rate, with average transaction values (ATVs) for professional consumers being 25% higher than those of non-professionals, indicating strong customer engagement and retention. Furthermore, Sally Beauty's improving balance sheet, bolstered by robust free cash flow generation, enhances its capital allocation flexibility, positioning the company favorably for future growth opportunities.
Bears say
Sally Beauty Holdings Inc. faces potential financial challenges due to worsening sales trends or economic conditions affecting its franchisees, particularly those associated with Armstrong McCall. Historically, the company has exhibited low-to-mid-teens EBIT margins, which may indicate operational challenges given its slightly lower gross margins during the fiscal years 2013–2019. Furthermore, Sally Beauty concluded the third quarter of 2025 with $882 million in long-term debt and a net leverage ratio of approximately 1.7x, raising concerns about its financial stability amid ongoing debt management efforts.
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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