Barclays Reiterates an 'Overweight' on Sally Beauty Holdings (SBH); Attractive Given Strong Position in Niche Markets

Barclays reiterates an 'Overweight' on Sally Beauty Holdings (NYSE: SBH) price target of $32.00.

Analyst, Meredith Adler, highlighted positive comments after meeting with the Company's CEO and VP-Investor Relations: 1) Reiterated long-term stability, but sees same-store sales nearer to +4-5% than +6%; 2) Some one-time factor gave 1H 2012 comps a boost, but Q3 will be depressed; 3) Markets outside U.S. still growing; 4) Free cash flow is strong; 5) Leverage is high, but company comfortable with debt/EBITDA ratio (2.2-2.5x); 6) Board of directors is debating on dividend or stock buyback (Barclays' Adler believes stock buyback is most likely around Spring 2013)

For an analyst ratings summary and ratings history on Sally Beauty Holdings click here. For more ratings news on Sally Beauty Holdings click here.

Shares of Sally Beauty Holdings closed at $27.55 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• ACCO Brands to buy European peripherals brand Trust for ~$100M revenue
• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating