What Happened?
Shares of beauty supply retailer Sally Beauty (NYSE: SBH) jumped 4.8% in the morning session after an analyst at Canaccord Genuity raised the stock's price target.
Canaccord Genuity analyst Susan Anderson increased the price target on the beauty retailer to $19.00 from $15.00, marking a 26.67% jump. Anderson maintained a 'Buy' rating on the shares, but the substantially higher target suggests a more bullish outlook on the company's future performance. This positive revision from the investment firm signals growing confidence in the stock's potential upside, driving investor sentiment for the day.
After the initial pop the shares cooled down to $15.71, up 4.8% from previous close.
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What Is The Market Telling Us
Sally Beauty’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 21.3% on the news that the company reported impressive first quarter 2025 results, with a significant margin improvement contributing to the EBITDA and EPS beat.
On the other hand, sales fell 2.8%, weighed down by softer foot traffic and weaker demand for stylists due to the harsh flu season and macro uncertainty. Zooming out, we think this was a mixed yet decent marred by short-term challenges.
Sally Beauty is up 47.1% since the beginning of the year, and at $15.71 per share, has set a new 52-week high. Investors who bought $1,000 worth of Sally Beauty’s shares 5 years ago would now be looking at an investment worth $1,467.
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