Should You Buy Sally Beauty Holdings Inc (SBH) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
15.120
1 Day change
1.00%
52 Week Range
17.920
Analysis Updated At
2026/01/26
Sally Beauty Holdings Inc. (SBH) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock has positive momentum from recent analyst upgrades, improving financial performance, and strategic initiatives such as store refreshes and partnerships. While technical indicators are mixed, the long-term growth potential and positive sentiment make it a suitable investment.
Technical Analysis
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), indicating a positive trend. The MACD histogram is above 0 and positively contracting, suggesting potential upward momentum. However, the RSI at 42.022 is neutral, and the stock is trading near its key support level of 15.075, which could act as a floor for further downside.
Options Data
Bearish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Technical Summary
Sell
5
Buy
9
Positive Catalysts
Recent analyst upgrades with price targets raised to $18 and $19, reflecting optimism about growth potential.
Strategic initiatives like store refreshes and partnerships with DoorDash and Uber Eats to drive sales.
Positive financial performance in Q4 2025, with revenue, net income, and EPS all showing YoY growth.
Neutral/Negative Catalysts
Morgan Stanley maintains an Underweight rating, citing subdued topline growth and limited EBIT growth potential.
The stock is trading near its support level, which could indicate potential short-term volatility.
Financial Performance
In Q4 2025, Sally Beauty reported a 1.29% YoY increase in revenue to $947.08M, a 3.90% YoY increase in net income to $49.93M, and an 8.89% YoY increase in EPS to $0.49. Gross margin improved by 1.80% to 52.17%, reflecting operational efficiency.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts are optimistic about SBH, with recent upgrades from TD Cowen (price target $18) and Raymond James (price target $19, upgraded to Outperform). These reflect confidence in the company's growth potential, driven by store improvements and strategic initiatives. However, Morgan Stanley remains cautious with an Underweight rating and a $13 price target, citing limited growth potential.
Wall Street analysts forecast SBH stock price to rise 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 USD and a high forecast of 19 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
Wall Street analysts forecast SBH stock price to rise 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 USD and a high forecast of 19 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.
2 Buy
1 Hold
1 Sell
Hold
Current: 14.970
Low
13
Averages
15.88
High
19
Current: 14.970
Low
13
Averages
15.88
High
19
TD Cowen
Buy
maintain
$17 -> $18
AI Analysis
2026-01-21
Reason
TD Cowen
Price Target
$17 -> $18
AI Analysis
2026-01-21
maintain
Buy
Reason
TD Cowen raised the firm's price target on Sally Beauty to $18 from $17 and keeps a Buy rating on the shares. The firm adjusted targets in the beauty space as part of a Q4 preview. TD sees the most upside potential at Estee Lauder on improving China trends and sustained U.S. momentum. Beauty trends appear solid, which should drive revenue upside for all companies, the analyst tells investors in a research note.
Raymond James
Olivia Tong
Market Perform -> Outperform
upgrade
$19
2026-01-21
Reason
Raymond James
Olivia Tong
Price Target
$19
2026-01-21
upgrade
Market Perform -> Outperform
Reason
Raymond James analyst Olivia Tong upgraded Sally Beauty to Outperform from Market Perform with a $19 price target.
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