Oppenheimer analyst Rupesh Parikh maintained a Hold rating on Sally Beauty (SBH) today. The company’s shares closed yesterday at $17.70.
Parikh noted:
“Earlier this morning, SBH reported weaker than expected Q2 results. $0.51 fell short of a Street figure of $0.54. Comps remained soft, declining 0.5%, essentially consistent with Street forecasts. Management cited both an Easter shift and cautious retail consumers in February as headwinds. In addition, gross margins declined 40 bps below Street expectations for a 10 bps decline. The company reiterated guidance, but we continue to view full year targets as aggressive. We continue to look favorably upon the more aggressive efforts from SBH management, but are less confident in the precise timing of a top-line turn. We believe it’s best to stay on the sidelines for now.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 17.0% and a 66.8% success rate. Parikh covers the Services sector, focusing on stocks such as United Natural Foods, Ulta Beauty Inc, and Sprouts Farmers.
The word on The Street in general, suggests a Moderate Sell analyst consensus rating for Sally Beauty with a $18 average price target.
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The company has a one-year high of $23.61 and a one-year low of $13.72. Currently, Sally Beauty has an average volume of 1.35M.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SBH in relation to earlier this year.
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Sally Beauty Holdings, Inc. is an international retailer and distributor of professional beauty supplies. It operates through the following segments: Sally Beauty Supply and Beauty Systems Group.
