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Sally Beauty upgraded to Buy as shares dip to $13 after strong Q2 with revenue and margin growth.

Analyst Insights
11 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Sally Beauty Holdings, Inc. has been upgraded to a Buy rating following a share price drop to $13, presenting an attractive buying opportunity. The company reported strong Q2 results, with revenue increasing 2.3% to $903.4 million and comparable store sales rising 1.3%. Gross margins expanded notably to 52.7%, and the balance sheet remains strong with $157 million in cash, no revolver borrowings, and net debt leverage reduced to 1.5x. The company also continues share buybacks and projects fiscal year 2026 earnings per share of $2.06, an 8.4% year-over-year growth, with shares trading at a low forward P/E of 6.4x, signaling potential value for investors.

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