On Tuesday, Sally Beauty got ratings boost and price target hikes from some analysts.
Cowen analyst Oliver Chen raised the beauty retail company’s shares to outperform from market perform. Chen boosted his price target to $30 from $28.
The analyst cited “favorable hair and salon trends” and Sally Beauty's “structural modernization efforts” as factors that should eventually lead to improved brand awareness and earnings growth. According to him, tailwinds to the company included COVID-19-driven do-it-yourself at-home trends yielding about 20% color category growth.
Chen indicated that Sally Beauty is emerging from the pandemic as a stronger retailer on the back of its digital offerings, improving store experience on rehabs, and strategic store closures.
Oppenheimer analyst Rupesh Parikh raised rating on Sally Beauty shares to outperform from perform, with a $24 price target. Parikh said that the over 20% pullback in the shares from recent May highs creates an attractive entry point for "value players." Sally Beauty has sustainable earnings per share power in at least the $2.35 range, according to Parikh.