Sally Beauty Holdings (SBH): Thought After CEO Meeting - Cowen

Cowen analyst, Oliver Chen reiterated his Outperform on shares of Sally Beauty Holdings (NYSE: SBH) after meeting with the CEO and learning that the majority of disruptive initiatives such as "hair care reset, packaging updates, store refreshes, IT, & DC updates" are completed. Going forward, the company can focus on training store associates to improve selling, tweaking the right marketing focus, optimizing loyalty, & adding new brands.

The analyst expects a steady pace of share gains in professional beauty products. "Existing share leadership (32% NA share), a scale Beauty Club Card loyalty program, global growth runway (23% of sales), and hair care focus (45+% mix) will drive steady low single digit comps and consistent store growth (+2-3%) in a relatively recession resistant industry".

No change to the price target of $29.

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 $26.44 yesterday.

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