Ulta Beauty (ULTA) and Sally Beauty (SBH) Upgraded Amid Growth Expectations for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Market Challenges and Opportunities: The beauty, personal care, and household products sector faces slowing global consumption and structural tariff pressures in 2026, yet restructuring initiatives launched in 2025 are expected to yield positive impacts, helping companies navigate market challenges.
- Rating Upgrades: Raymond James analyst Olivia Tong upgraded Ulta Beauty (ULTA) from Outperform to Strong Buy, anticipating outsized growth in 2026, reflecting the company's success in attracting younger consumers and its effective loyalty programs.
- Sally Beauty's Growth Potential: Tong raised Sally Beauty Holdings (SBH) from Market Perform to Outperform, believing that the 'Sally Ignited' store refresh and partnerships with DoorDash and Uber Eats will enhance customer convenience and drive sales growth.
- Price Target Increases: Tong raised Ulta's price target by 31% to $790 and set a $19 target for Sally Beauty, reflecting optimism about both companies' future growth potential, contributing to their stock prices reaching multi-year highs.
Analyst Views on SBH
Wall Street analysts forecast SBH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SBH is 15.88 USD with a low forecast of 13.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
1 Hold
1 Sell
Hold
Current: 16.050
Low
13.00
Averages
15.88
High
19.00
Current: 16.050
Low
13.00
Averages
15.88
High
19.00
About SBH
Sally Beauty Holdings, Inc. is an international specialty retailer and distributor of professional beauty supplies. The Company operates in two business segments: Sally Beauty Supply and Beauty Systems Group, which offers beauty products in key categories, including hair care, hair color, styling tools and nails. Sally Beauty Supply is an omni-channel retailer that offers professional beauty supplies and provides education to retail consumers and salon professionals throughout North America, South America and Europe. Sally Beauty Supply stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary brands, such as Ion, Bondbar, Strawberry Leopard, and Generic Value Products. Beauty Systems Group stores, branded as Cosmo Prof or Armstrong McCall stores, along with its outside sales consultants, sell up to 8,000 professionally branded products, including Paul Mitchell, Wella, Matrix, Schwarzkopf, Kenra, Goldwell, Joico, Amika and Moroccanoil.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
