Piper Jaffray reiterated an Overweight rating on Sally Beauty Holdings (NYSE: SBH), and cut the price target to $31.00 (from $34.00), following the company's September quarter report and conference call. Shares of SBH responded favorably to the results, and management's FY16 outlook today, which came in better than feared largely calling for a directional improvement in underlying trends. The quarter delivered inline results with the comp sales trendline improving across both the Sally Beauty and BSG divisions.

Analyst Stephanie Wissink commented, "Following the company's Sept quarter report and conference call today, we are updating our estimates to align with management's outlook, which we believe may prove conservative. The quarter delivered inline results with the comp sales trendline improving across both the Sally Beauty and BSG divisions. The company's initiatives to refresh stores, merchandising and marketing efforts appear to be paying off and we expect topline growth to continue next year, while we still remain somewhat concerned on pass-through to op profits. We are taking a more conservative stance to our estimates as we see more meaningful recovery pushed out another 6-12 months vs. our prior estimates. Our price target moves from $34 to $31 on the same 16.5x multiple on our FY17E EPS."

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Shares of Sally Beauty Holdings closed at $24.40 yesterday.