
SBH Stock Forecast & Price Target
SBH Analyst Ratings
Bulls say
Sally Beauty Holdings Inc. is poised for positive growth due to its effective engagement with professionals in the beauty industry, leading to increased conversion rates and average transaction values that are 25% higher compared to non-professional customers. The broader beauty market is projected to experience growth rates ranging from low single digits to mid-single digits, with an even stronger forecast for the prestige segment, which supports a favorable long-term outlook for the company’s product offerings. Furthermore, strong free cash flow generation is contributing to an improving balance sheet, enhancing the company’s flexibility in capital allocation and strategic initiatives.
Bears say
Sally Beauty Holdings faces increasing risks as deteriorating sales trends and adverse economic conditions could negatively impact the financial results of its franchisees, particularly within the Armstrong McCall sector. Historically, the company has maintained low-to-mid-teens EBIT margins, but the recent debt levels, with $882 million in long-term obligations and a net leverage ratio of approximately 1.7x, present concerns for financial stability moving forward. Additionally, a low-to-mid-teens free cash flow yield relative to current prices raises alarms regarding the overall sustainability of its financial health.
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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