Lovisa shares lift as Morgan Stanley raises target price
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The news: Shares in jewellery retailer Lovisa gained in afternoon trading after analysts at Morgan Stanley lifted their target price on the stock and reiterated their ‘overweight’ rating amid accelerated store growth.
The numbers: Lovisa Holdings’ share price had increased by 3.8% to $32.65 at 1:46pm AEST.
In a research note Morgan Stanley analyst Chenny Wang lifted the investment bank’s target price on the share from $31.50 to $35.
The context: Wang flagged that the Lovisa store rollout appears to be ahead of expectations with the pace accelerating in the second half of financial year 2025 compared to the first half.
There is also room for growth following the launch of a new concept in the UK in 2H25 and following the opening of Lovisa’s second store in China. However, the research note says the “Australian store base did see optimisation in 2H25".
The bank lifted its valuation on the stock ahead of the full-year earnings report in August, although there is no change to its earnings per share.
The source: Morgan Stanley research
