Sally Beauty attracts bullish view from Piper Sandler
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Sally Beauty (NYSE:SBH) stock edged higher on Thursday as Piper Sandler said it sees ample upside to shares moving forward.
In an initiation note on Thursday the firm's analysts assigned an Overweight rating and a $15 price target to the stock.
“We believe there's a lot the street hasn't fully appreciated with SBH, and with valuation at a significant discount right now, we see a very compelling entry point,” the note stated.
Data analytics firm Placer.ai also indicated the company is making progress on rightsizing its locations and investing in e-commerce capabilities. On the latter point, the firm believes Sally Beauty (SBH) +3.11% is “particularly well-positioned to maximize online success.”
The data provided by the Placer.ai indicates the upswing for the beauty industry is continuing at pace, bolstered by younger consumers and pent up demand from the pandemic. Not only Sally Beauty, but Ulta Beauty (ULTA) and LVMH-owned Sephora are expected to continue to benefit.
“Compared to both 2019 and 2021, visits to beauty industry venues have increased significantly. Throughout 2022, foot traffic remained between 13.4% and 30.9% higher than it was three years prior,” Placer.ai’s latest report highlighted. “And even though 2021 saw particularly strong performance from March onwards, visits in 2022 were also up year over year.”
Both Kohl’s (KSS), via its partnership with Sephora, and Target (TGT), via its Ulta Beauty (ULTA) cooperation, are also expected to benefit.
Health and personal care stores were one of the few sectors to see a sequential increase in sales in November’s retail sales report. Dig into the winners and losers in Thursday’s data.