Lovisa shares rise as UBS backs improved store growth
Make us a preferred source
Make us a preferred source on Google
The news: Lovisa shares advanced in morning trade after UBS upgraded its rating on the jewellery retailer due to better-than-expected store growth and upside potential from the company's new 'Jewells' format.
The numbers: Lovisa shares were up 1.7% to $30.34 at 11:10am AEST, having gained more than 9% over the last month.
UBS upgraded Lovisa from 'sell' to 'neutral' and hiked its price target from $26 to $30.
The context: UBS analysts noted that Lovisa's store growth had slowed in recent years following a strong fiscal 2023, which had been a "core tenet" of its 'sell' rating.
In recent weeks, however, the rate of store growth has accelerated and moderated those concerns, the analysts said.
They also flagged that Lovisa's new 'Jewells' format, with larger stores and a higher-priced product range, provides scope for greater store and sales growth.
The source: UBS research
