Oppenheimer analyst Rupesh Parikh maintained a Hold rating on Sally Beauty (SBH) today. The company’s shares closed yesterday at $18.43, close to its 52-week high of $19.17.
Parikh commented:
“SBH will report Q4 results on 11/8. Since late August, the shares have meaningfully outperformed, up 20% vs. a decline of 5% in the S&P 500. We spent time with the management team in mid-September and walked away much more constructive on the longer-term elements of a turn. The company is now moving much more aggressively to reposition the business for a changing retail landscape. We also look favorably upon the defensive aspects of the business as the US economic cycle matures and upon its strong underlying cash generation (~10% free cash flow yield). We believe investors should keep SBH shares on their radar and are closely watching a likely reset on Thursday due primarily to apparent Street mis-modeling of share buybacks.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 16.4% and a 64.3% success rate. Parikh covers the Services sector, focusing on stocks such as United Natural Foods, Wal-Mart Stores Inc, and Sprouts Farmers.
The word on The Street in general, suggests a Moderate Sell analyst consensus rating for Sally Beauty with a $15.83 average price target.
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Based on Sally Beauty’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $58.23 million. In comparison, last year the company had a net profit of $35.72 million.
Based on the recent corporate insider activity of 25 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 Sally Beauty Supply and Beauty Systems Group segments.
