Sally Beauty Holdings, Inc. (NYSE: SBH) could be a possible takeover target from Amazon.com, Inc. (NASDAQ: AMZN) according to a new report from D.A. Davidson. With Ulta Beauty Inc (NASDAQ: ULTA) shares trading up nearly 4 percent on rumors of a possible buyout from Wal-Mart Stores Inc(NYSE: WMT), Sally Beauty could be a worthy target that would enable Amazon to break into the beauty market. “Beauty has been a hard category to crack for AMZN, and it has entered a partnership with SBH to test in the Dallas area same-day delivery of beauty orders fulfilled by Sally Beauty retail store,” said D.A. Davidson analyst Linda Bolton Weiser. Sally Beauty’s uniquely high gross margin of 55 percent and a high number of retail stores, over 2,900, were key reasons why Sally Beauty became the beauty partner of Amazon according to Weiser. Interestingly, Sally Beauty’s strategy has not been to compete with bigger competitors Wal-Mart and Target Corporation (NYSE: TGT). Nearly 50 percent of the company’s US sales come from private label products or products exclusive to the store. SourceSBH: The price will try to reach the upper edge of the falling channel. $SBH, Sally Beauty Holdings, Inc. (Name to be changed from Sally Holdings, Inc.) / D AMZN: We can expect some correction. After that price will try to break out the upper edge of the falling channel again. $AMZN, Amazon.com, Inc. / D ULTA: The price will try to form some upside. $ULTA, Ulta Beauty, Inc. / D WMT: STochastics are overbought, upside is over. The price will go down to the lower edge of the rising channel. $WMT, Walmart Inc. / D TGT: The upside is limited. The price will go down to the lower edge of the rising channel. $TGT, Target Corporation / D