Sally Beauty, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Oliver Chen from TD Cowen reiterated a Buy rating on the stock and has a $17.00 price target.
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Oliver Chen has given his Buy rating due to a combination of factors that highlight Sally Beauty’s strong performance and potential for growth. The company has demonstrated resilience with a notable increase in color sales, which contributed to an overall comparable sales beat. Sally Beauty’s gross margin exceeded expectations, and the company achieved an earnings per share (EPS) beat, reinforcing its financial strength.
Additionally, the valuation of Sally Beauty remains attractive, with a price-to-earnings ratio that is favorable compared to its historical average. The company’s modernization efforts, including digital marketing and store improvements, are expected to drive further growth. Furthermore, Sally Beauty’s financial discipline, evidenced by debt reduction and share buybacks, supports its long-term growth targets. These factors collectively underpin Oliver Chen’s confidence in the company’s ability to achieve its financial goals, leading to the Buy rating.
Chen covers the Consumer Cyclical sector, focusing on stocks such as Tapestry, LVMH Moet Hennessy Louis Vuitton, and Canada Goose Holdings. According to TipRanks, Chen has an average return of 6.2% and a 53.01% success rate on recommended stocks.
In another report released on November 10, Canaccord Genuity also maintained a Buy rating on the stock with a $13.89 price target.