Oppenheimer Sticks to Its Hold Rating for Sally Beauty (SBH)


In a report released today, Rupesh Parikh from Oppenheimer maintained a Hold rating on Sally Beauty (SBH). The company’s shares closed yesterday at $18.17.

Parikh wrote:

“We overall view the collective Q1 (Dec.) performance at SBH as modestly ahead of expectations. Q1 adjusted EPS of $0.57 topped a Street figure of $0.53 driven in part by a $0.03 benefit from a lower tax rate. On the positive side, Sally Beauty segment comps turned positive (+0.7%) and management commentary seems fairly upbeat on progress with turnaround initiatives. On the negative side, BSG comps remained in negative territory (-0.6%) with gross margins declining 80 bps. We continue to look favorably upon management’s efforts, but still view FY19 guidance as aggressive. SBH shares remain on our radar.”

According to TipRanks.com, Parikh is a 5-star analyst with an average return of 15.4% and a 62.9% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.

Sally Beauty has an analyst consensus of Hold, with a price target consensus of $20.20.

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Based on Sally Beauty’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $55.19 million. In comparison, last year the company had a net profit of $83.26 million.

Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock.

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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.

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